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.
|
