1
Q
What is profit maximisation?
A
MC = MR
2
Q
What is a contestable market?
A
A market where there is freedom of entry to the industry and where costs of exit are low
3
Q
What is hit and run competition?
A
When firms can enter a market at low cost attracted by high profits and then leave the market at low cost when profits fall
Economics A-Level Micro
flashcards
Decks in class (32)
# Cards
-
1) Economics as a social science3
-
2) Economic Data3
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3) The economic problem5
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4) PPF's3
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5) Specialisation and the division of labour7
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6) Types of Economy4
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7) Rational decision making5
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8) Demand4
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9) PED8
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10) YED and XED9
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11) Supply8
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12) Price determination3
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13) Interrelationships between markets5
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14) Indirect taxes and subsidies4
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19) The price mechanism1
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20) Types of market failure4
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21) Externalities8
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22) Information gaps4
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23) Public and merit goods5
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24) Government intervention in markets1
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25) Government failure3
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45) Production4
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46) Costs8
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47) Revenue5
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48) Profit5
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49) Market structure7
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50) Perfect Competition7
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51) Monopoly8
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52) Monopolistic competition1
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53) Oligopoly9
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54) Contestability3
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Equations8
