# Statistics for A level Year 2 Microeconomics

### General Stats

• This quiz has been taken 14 times
• The average score is 13 of 27

Unit cost advantages from expanding the scale of production in the long-runEconomies of Scale
75%
When there is a wide-ranging agreement among several firms in a marketCartel
63%
Total revenue - Total cost - Opportunity costEconomic profit
63%
A small number of large firms produce most of the output of an industry (MS)Oligopoly
63%
A large number of small suppliers, none of which is large enough to dominate the market (MS)Perfect competition
63%
In perfect competition, when price = AVCShutdown point
63%
Any profit made above normal profit causing new firms to enter the market (AR>AC)Supernormal profit
63%
Fixed cost + Variable costTotal cost
63%
Costs that are dependant on outputVariable cost
63%
Total revenue - Total costAccounting profit
50%
Secret or illegal cooperation in order to deceive other firms / achieve a common goalCollusion
50%
Focusses on the change in choice and quantity over time; linked with innovation (Eff)Dynamic
50%
Costs that do not change with outputFixed cost
50%
In highly contestable markets, firms enter and leave in order to make short term supernormal profitsHit and Run
50%
The characteristics of a market which determine the behaviour of firmsMarket Structure
50%
A formal agreement - when firms agree to fix prices and quantity (illegal in EU, UK and US) (Collusion)Overt
50%
When organisational wastage leads to a loss of efficiency (Eff)X
50%
When an economy is allocating scarce resources to meet society's wants and needs (P=MC) (Eff)Allocative
38%
The market share of the largest firms in the industryConcentration Ratio
38%
How easy it is for new firms to enter an industry/marketContestability
38%
Lead to a rise in a firms long-run average costsDiseconomies of Scale
38%
Occurs when a whole industry grows larger and firms benefit from lower long-run average costs (EoS)External
38%
Producing at the lowest possible cost of production (MC=AC) (Eff)Productive
38%
When AR < AC causing firms to leave the marketSubnormal profit
38%
Informal agreement - firms monitor one another and copy each others actions (Collusion)Tacit
38%
A large number of small suppliers producing non-homogenous goods so have some price setting power (MS)Monopolistic Competition
25%
Costs of production which are not recoverable if a firm leaves the marketSunk Costs
25%