Microeconomics (Firms) Crossword Puzzle

QUESTIONS LIST:

• average cost: total cost/output.
• average fixed costs: downward sloping line (from left to right) as the fixed costs are shared among increased output.
• average revenue: total revenue/number of product/services sold.
• average variable costs: initially downward sloping as increasing returns to labour and economies of scale are achieved with increased output & then they rise with output.
• costs: the money paid to produce/provide the service/product.
• economies of scale: when increases in production (output) lead to reduced total average costs (discount for bulk buying etc.).
• factory: the site/building that produces the product, a firm may have more than one.
• firm: the company/business that owns one or more factories.
• fixed costs: costs that have to be paid regardless of level production (rent, loan repayments).
• horizontal integrate: merge of firms at the same stage of production.
• industry: a group of firms producing similar or same goods (eg: soft drinks industry - coca cola would be a firm in this industry).
• monopoly: single firm controls the supply in a market (has no competitors).
• multinational company: company that has outlets or production facilities in more than one country.
• normal profit: profit level just high enough to keep firms in the industry.
• primary industry: industries involved in extracting raw materials (agriculture, fishing, forestry, mining).
• productivity: output per worker.
• profit: revenue - costs (the money you are left over with after costs are deducted).
• revenue: total money obtained from sale