What students need to learn:
Content

Students should be able to:

Additional Guidance Notes

Costs

Illustrate and perform simple calculations using total cost; total
fixed cost; total variable cost; average total cost; average fixed cost;
average variable cost and marginal cost.

Students will need to be able to draw and interpret cost curves;
distinguish between short run and long run costs; and explain the shape of
the average cost curve in terms of diminishing marginal returns and economies
of scale.
Students will not require a knowledge of marginal product theory to
explain costs.

Economies and
diseconomies of scale

Identify economies and diseconomies of scale.

Students must be able to distinguish and give examples of internal
and external economies and diseconomies of scale.
