Posts tagged revenue
Revenues –Total, Marginal and Average
Dec 2nd
By now you should understand the graphs for
a) Total Product (b) Average and Marginal Product (c) FC, VC and TC (d) AFC, AVC, ATC, MC
You should also recognise the ultimate assumption of firms – profit maximising
Now we turn to revenue.
Image: Some rights reserved by saturnism
You now need to:
- Recap on the difference between perfect competition and monopoly market structures
- Understand the different equations for cost and the equations for calculating revenue
- Understand the behaviour of revenue for a monopoly (a price giver acting in imperfect comp) (this includes relevant graphs, trends of graphs and explanations (you might also possibly recognise the role of elasticity)
- The same as above, but for Perfect Competition
- Understand the purpose of studying revenue and how relates to previous learning on output / product and costs
First of all, recall the main differences between monopoly and perfect competition:
Now make sure you know the Golden Equations – complete this work sheet before moving on:
Golden Equations MS Word version
Golden Equations Google Doc version – make your own copy before you can edit
Now attempt to complete this spreadsheet worksheet. Take your time – work through it slowly and deliberately. There are two tabs to complete, one for monopoly situation (first) and one for perfect competiton. You might like to research a little to help give as full answers as possible for the text boxes.
Once you have checked through your answers to the above, you can review your overall understanding with this video:
Revenue Curves For Firms by pajholden
Finally, you should practice drawing the curves you have learned using the activities above and then try to annotate them with their key features and explanations
Output, Costs, Revenue and Profit
Feb 1st
[Image: nDevilTV 
Some rights reserved]
The Cambridge IGCSE syllabus requires us to have a good understanding of the following:
We have seen useful videos on YouTube before, particularly MJMFoodie’s very visual explanations (which are often aimed at higher stages of education, such as IB). One of her useful videos (on fixed and variable costs) is here:
Another useful video by MJMFoodie gives an introduction to the topic and explains the idea of the law of diminishing returns.
A great idea for a learning activity to really understand this topic is for you to work with one other person towards producing your own video, MJMFoodie style. It should be simple – create a PowerPoint (or similar) with images. These images can be your own that you have drawn on the computer, scanned into the computer, or other images produced by other people. It is obviously preferable to use images that are not copyrighted, so some good places to visit for non-copyright images are here:
http://www.everystockphoto.com/
http://search.creativecommons.org/
As you assemble your slideshow, make sure you are working on your script to go with each slide. Later on you will want to record your voiceover while playing the slideshow. In that case, planning the video out is essential and you should start with your partner by story-boarding the video.
Your video should summarise this theory on costs, revenue and profit as outlined in the syllabus above. It should summarise it in a highly visual and accessible way. Your video should ideally last somewhere between 5 and 10 minutes.
A good starting point is to consult the relevant chapter in the text book you are using. A good text book is this one, which introduces the idea using Sue’s Teddy Bear Firm.
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Economics: A Complete Course for IGCSE and O Level: Endorsed by University of Cambridge International Examinations |
Other simple summaries of aspects of this topic are found here:
Tutor2U – Simple Overview of Output, Fixed Costs and Variable Costs
Tutor2U – Simple Overview of Revenue, Costs and Profit
Tutor2U – Simple Overview of Average Costs and the Scale Of Production
