Firm theory (HL)

Production
A product is a good you can sell.
Total production (TL)
(http://nimbix.net/wp-
content/uploads/2013/11/total_product_curve.png)
The curve is first convex, then concave.







Marginal (MP) and average production (AP)

(http://wps.prenhall.com/wps/media/objects/988/1012152/chapter06/6.5.gif)

Long-run a time period in which all factors of production are variable
Short-run a time period in which at least 1 factor of production is fixed
Revenue
Total revenue (TR)

The AR function will be the same as the demand function.
PERFECT COMPETITION

IMPERFECT COMPETITION / MONOPOLY









MR will be 2x as steep as AR