Economics GCSE Topic 2.5-2.6

competition

different firms are trying to sell a similar product to a consumer

oligopoly

a small number of firms control the large majority of market share

monopoly

a sole product or seller of a good or service

production

the total output of goods and services produced by a firm or industry in a period of time

productivity

one measure of the degree of efficinecy in the use of factors of production in the production process. It is measured in terms of output per unit of input

fixed costs

costs which DO NOT vary with output

variable costs

costs which DO vary with output

total cost

all of the costs of production of a firm added together. It includes fixed and variable costs.

total revenue

the total income gained from selling the firm’s output

economies of scale

a fall in average cost of production as output increases

external economies of scale

a fall in average cost due to an increase in the size of the industry

diseconomies of scale

a rise in average cost as output increases