2.5 & 2.6 competition and production

Competition is..

Competition is where different firms are trying to sell a similar product to a consumer

Monopoly is..

A sole producer or seller of a good or service

Oligopoly is

Oligopoly is where a small number of firms control the large majority of market share.

(2.6) Production

Production occurs through business combining the factors of production to produce goods or services to make output normally to meet the needs of the consumer

(2.6) Productivity

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

(2.6) Average cost

The cost of producing a unit (unit cost of production)

(2.6) Total Cost

Total cost is all the costs of the firm added together

(2.6) Total Revenue

Total revenue is the total income of a firm from the sale its goods or services.

(2.6) Loss

When a firm’s revenue is less than its cost

(2.6) Economies of Scale

The cost advantages a firm can gain by increasing the scale of production leading to a fall in average costs