What students need to learn:
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Content
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Students should be able to:
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Additional Guidance Notes
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Normal and
supernormal profit
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Understand the distinction between normal and supernormal profit.
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This can be related to the understanding of the objectives of the
firm and the ability of different firms to make normal and supernormal
profit.
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Profit maximisation
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Explain and illustrate the concept of profit maximisation using
marginal cost and marginal revenue.
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