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style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../35118/unit-2111-market-power-theory-of-production-and-costs-hl.html" title="Unit 2.11(1) Market power - Theory of production and costs (HL)">Unit 2.11(1) Market power - Theory of production and costs (HL)</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../35125/unit-2112-market-power-perfect-competitionhl.html" title="Unit 2.11(2) Market power - Perfect competition(HL)">Unit 2.11(2) Market power - Perfect competition(HL)</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../35147/unit-2113-market-power-monopolyhl.html" title="Unit 2.11(3) Market power - Monopoly(HL)">Unit 2.11(3) Market power - Monopoly(HL)</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../35151/unit-2114-market-power-monopolistic-competitionhl.html" title="Unit 2.11(4) Market power - Monopolistic competition(HL)">Unit 2.11(4) Market power - Monopolistic competition(HL)</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../35153/unit-2115-market-power-oligopolyhl.html" title="Unit 2.11(5) Market power - Oligopoly(HL)">Unit 2.11(5) Market power - Oligopoly(HL)</a></li><li class=" parent" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../41603/economics-real-world-examples-and-extension-material-.html" title="Economics real world examples and extension material ">Economics real world examples and extension material </a></li><ul class="level-3 "><li class="" style="padding-left: 42px"><i class="expander fa fa-caret-right "></i><a class="" href="../43378/opportunity-cost-and-production-possibility-curves.html" title="Opportunity cost and production possibility curves">Opportunity cost and production possibility curves</a></li><li class="" style="padding-left: 42px"><i class="expander fa fa-caret-right "></i><a class="" href="../42559/demand-theory.html" title="Demand theory">Demand theory</a></li><li class="" style="padding-left: 42px"><i class="expander fa fa-caret-right "></i><a class="" href="../41886/the-price-mechanism.html" title="The price mechanism">The price mechanism</a></li><li class="" style="padding-left: 42px"><i class="expander fa fa-caret-right "></i><a class="" href="../43188/market-demand-and-supply.html" title="Market demand and supply">Market demand and supply</a></li><li class="" style="padding-left: 42px"><i class="expander fa fa-caret-right "></i><a class="" href="../41705/demerit-goods.html" title="Demerit goods">Demerit goods</a></li><li class="" style="padding-left: 42px"><i class="expander fa fa-caret-right "></i><a class="" href="../42275/market-failure-and-climate-change.html" title="Market failure and climate change">Market failure and climate change</a></li><li class="" style="padding-left: 42px"><i class="expander fa fa-caret-right "></i><a class="" href="../42925/market-power.html" title="Market power">Market power</a></li><li class="" style="padding-left: 42px"><i class="expander fa fa-caret-right "></i><a class="" href="../42099/applying-game-theory.html" title="Applying game theory">Applying game theory</a></li></ul></ul><li class=" parent" style="padding-left: 14px"><i class="expander fa fa-caret-right "></i><a class="" href="../34407/chapter-3-macroeconomics.html" title="Chapter 3: Macroeconomics">Chapter 3: Macroeconomics</a></li><ul class="level-2 "><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../34355/unit-311-measuring-the-level-of-economic-activity.html" title="Unit 3.1(1): Measuring the level of economic activity">Unit 3.1(1): Measuring the level of economic activity</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../34432/unit-312-measuring-economic-development.html" title="Unit 3.1(2): Measuring Economic Development">Unit 3.1(2): Measuring Economic Development</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../34485/unit-321-variations-in-economic-activity-aggregate-demand-ad-.html" title="Unit 3.2(1): Variations in economic activity - aggregate demand (AD) ">Unit 3.2(1): Variations in economic activity - aggregate demand (AD) </a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../34487/unit-322-variations-in-economic-activity-aggregate-supplyas.html" title="Unit 3.2(2): Variations in economic activity - aggregate supply(AS)">Unit 3.2(2): Variations in economic activity - aggregate supply(AS)</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../34758/unit-331-macroeconomic-objectives-economic-growth.html" title="Unit 3.3(1) Macroeconomic objectives: economic growth">Unit 3.3(1) Macroeconomic objectives: economic growth</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../34771/unit-332-macroeconomic-objectives-unemployment-.html" title="Unit 3.3(2) Macroeconomic objectives: unemployment ">Unit 3.3(2) Macroeconomic objectives: unemployment </a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../34778/unit-333-macroeconomic-objectives-inflation-and-deflation--1.html" title="Unit 3.3(3) Macroeconomic objectives: inflation and deflation ">Unit 3.3(3) Macroeconomic objectives: inflation and deflation </a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../34925/unit-341-economics-of-inequality-and-poverty-1.html" title="Unit 3.4(1) Economics of inequality and poverty">Unit 3.4(1) Economics of inequality and poverty</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../34946/unit-342-policies-to-improve-equality-equity-and-poverty.html" title="Unit 3.4(2) Policies to improve equality, equity and poverty">Unit 3.4(2) Policies to improve equality, equity and poverty</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../34993/unit-35-government-management-of-the-economy-monetary-policy-1.html" title="Unit 3.5 Government management of the economy – monetary policy">Unit 3.5 Government management of the economy – monetary policy</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../34962/unit-36-government-management-of-the-economy-fiscal-policy-1.html" title="Unit 3.6 Government management of the economy – fiscal policy">Unit 3.6 Government management of the economy – fiscal policy</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../35017/unit-371-market-based-supply-side-policies--1.html" title="Unit 3.7(1) Market based supply-side policies ">Unit 3.7(1) Market based supply-side policies </a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../35018/unit-372-interventionist-supply-side-policies-.html" title="Unit 3.7(2) Interventionist supply-side policies ">Unit 3.7(2) Interventionist supply-side policies </a></li><li class=" parent" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../45803/economics-real-world-examples-and-extension-material--1.html" title="Economics real world examples and extension material ">Economics real world examples and extension material </a></li><ul class="level-3 "><li class="" style="padding-left: 42px"><i class="expander fa fa-caret-right "></i><a class="" href="../42639/measuring-economic-well-being-1.html" title="Measuring economic well-being">Measuring economic well-being</a></li><li class="" style="padding-left: 42px"><i class="expander fa fa-caret-right "></i><a class="" href="../43044/inflation.html" title="Inflation">Inflation</a></li><li class="" style="padding-left: 42px"><i class="expander fa fa-caret-right "></i><a class="" href="../42350/inequality.html" title="Inequality">Inequality</a></li><li class="" style="padding-left: 42px"><i class="expander fa fa-caret-right "></i><a class="" href="../41639/inequity-1.html" title="Inequity">Inequity</a></li></ul></ul><li class=" parent" style="padding-left: 14px"><i class="expander fa fa-caret-right "></i><a class="" href="../35414/chapter-4-the-global-economy.html" title="Chapter 4: The Global Economy">Chapter 4: The Global Economy</a></li><ul class="level-2 "><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../35346/unit-41-benefits-of-international-trade-1.html" title="Unit 4.1 Benefits of international trade">Unit 4.1 Benefits of international trade</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../35348/unit-4243-trade-protectionism-1.html" title="Unit 4.2/4.3 Trade protectionism">Unit 4.2/4.3 Trade protectionism</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../35407/unit-44-economic-integration-.html" title="Unit 4.4 Economic integration ">Unit 4.4 Economic integration </a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../35409/unit-45-exchange-rates-1.html" title="Unit 4.5 Exchange rates">Unit 4.5 Exchange rates</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../35413/unit-46-balance-of-payments--1.html" title="Unit 4.6 Balance of payments ">Unit 4.6 Balance of payments </a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../35675/unit-47-sustainable-development.html" title="Unit 4.7 Sustainable development">Unit 4.7 Sustainable development</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../35685/unit-48-measuring-development--1.html" title="Unit 4.8 Measuring development ">Unit 4.8 Measuring development </a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../35687/unit-49-barriers-to-economic-development-1.html" title="Unit 4.9 Barriers to economic development">Unit 4.9 Barriers to economic development</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../35702/unit-410-economic-growth-and-economic-development-strategies.html" title="Unit 4.10: Economic growth and economic development strategies">Unit 4.10: Economic growth and economic development strategies</a></li><li class=" parent" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../45804/economics-real-world-examples-and-extension-material-.html" title="Economics real world examples and extension material ">Economics real world examples and extension material </a></li><ul class="level-3 "><li class="" style="padding-left: 42px"><i class="expander fa fa-caret-right "></i><a class="" href="../41927/foreign-currency-1.html" title="Foreign currency">Foreign currency</a></li><li class="" style="padding-left: 42px"><i class="expander fa fa-caret-right "></i><a class="" href="../43532/exchange-rates-1.html" title="Exchange rates">Exchange rates</a></li><li class="" style="padding-left: 42px"><i class="expander fa fa-caret-right "></i><a class="" href="../43804/balance-of-payments.html" title="Balance of payments">Balance of payments</a></li><li class="" style="padding-left: 42px"><i class="expander fa fa-caret-right "></i><a class="" href="../41796/economic-development-1.html" title="Economic development">Economic development</a></li></ul></ul></ul><li class="ancestor parent std-toplevel" style="padding-left: 4px"><i class="expander fa fa-caret-right fa-rotate-90"></i><a class="" href="../20132/units-1-2-microeconomics.html" title="Units 1-2: Microeconomics">Units 1-2: Microeconomics</a></li><ul class="level-1 expanded"><li class=" parent" style="padding-left: 14px"><i class="expander fa fa-caret-right "></i><a class="std-disabled" href="#" title="Unit 1: Introduction to economics">Unit 1: Introduction to economics</a></li><ul class="level-2 "><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../20091/introductory-activity-1.html" title="Introductory activity">Introductory activity</a></li><li class=" parent" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../20093/unit-11-scarcity-choice-and-opportunity-cost.html" title="Unit 1.1: Scarcity, choice and opportunity cost">Unit 1.1: Scarcity, choice and opportunity cost</a></li><ul class="level-3 "><li class="" style="padding-left: 42px"><i class="expander fa fa-caret-right "></i><a class="" href="../21647/factors-of-production-1.html" title="Factors of production">Factors of production</a></li></ul><li class=" parent" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../20114/economic-systems.html" title="Economic systems">Economic systems</a></li><ul class="level-3 "><li class="" style="padding-left: 42px"><i class="expander fa fa-caret-right "></i><a class="" href="../20134/public-and-private-sectors-1.html" title="Public and private sectors">Public and private sectors</a></li></ul><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../28055/unit-12-economics-as-a-social-science-1.html" title="Unit 1.2: Economics as a social science">Unit 1.2: Economics as a social science</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../29921/circular-flow-of-national-income.html" title="Circular flow of national income">Circular flow of national income</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../29829/unit-1-review-terms-1.html" title="Unit 1: Review terms">Unit 1: Review terms</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../41600/introduction-to-economics-crossword-1.html" title="Introduction to economics crossword">Introduction to economics crossword</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../4331/unit-1-multiple-choice-quiz.html" title="Unit 1: Multiple choice quiz">Unit 1: Multiple choice quiz</a></li></ul><li class=" parent" style="padding-left: 14px"><i class="expander fa fa-caret-right "></i><a class="" href="../20177/unit-21-23-competitive-markets-demand-and-supply-1.html" title="Unit 2.1-2.3: Competitive markets - demand and supply">Unit 2.1-2.3: Competitive markets - demand and supply</a></li><ul class="level-2 "><li class=" parent" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../28517/unit-21-demand-1.html" title="Unit 2.1: Demand">Unit 2.1: Demand</a></li><ul class="level-3 "><li class="" style="padding-left: 42px"><i class="expander fa fa-caret-right "></i><a class="" href="../22349/determinants-of-demand-1.html" title="Determinants of demand">Determinants of demand</a></li></ul><li class=" parent" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../29949/unit-22-supply-.html" title="Unit 2.2: Supply ">Unit 2.2: Supply </a></li><ul class="level-3 "><li class="" style="padding-left: 42px"><i class="expander fa fa-caret-right "></i><a class="" href="../20184/changes-to-supply-and-demand-.html" title="Changes to supply and demand ">Changes to supply and demand </a></li><li class="" style="padding-left: 42px"><i class="expander fa fa-caret-right "></i><a class="" href="../21992/practise-exercises-1.html" title="Practise exercises">Practise exercises</a></li><li class="" style="padding-left: 42px"><i class="expander fa fa-caret-right "></i><a class="" href="../26112/gold-exchange-game-demand-and-supply-1.html" title="Gold exchange game: Demand and supply">Gold exchange game: Demand and supply</a></li></ul><li class=" parent" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../20194/unit-23-competitive-market-equilibrium-1.html" title="Unit 2.3: Competitive market equilibrium">Unit 2.3: Competitive market equilibrium</a></li><ul class="level-3 "><li class="" style="padding-left: 42px"><i class="expander fa fa-caret-right "></i><a class="" href="../20144/producer-and-consumer-surplus-1.html" title="Producer and consumer surplus">Producer and consumer surplus</a></li></ul><li class=" parent" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../22351/veblen-goods-and-super-luxury-goods-1.html" title="Veblen goods and super luxury goods">Veblen goods and super luxury goods</a></li><ul class="level-3 "><li class="" style="padding-left: 42px"><i class="expander fa fa-caret-right "></i><a class="" href="../25677/are-cryptocurrencies-the-new-tulipmania.html" title="Are Cryptocurrencies the new Tulipmania?">Are Cryptocurrencies the new Tulipmania?</a></li></ul><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../20472/unit-21-23-multiple-choice-quiz.html" title="Unit 2.1-2.3: Multiple choice quiz">Unit 2.1-2.3: Multiple choice quiz</a></li></ul><li class=" parent" style="padding-left: 14px"><i class="expander fa fa-caret-right "></i><a class="" href="../20113/unit-24-consumer-and-producer-behaviour-hl-only-1.html" title="Unit 2.4: Consumer and producer behaviour (HL only)">Unit 2.4: Consumer and producer behaviour (HL only)</a></li><ul class="level-2 "><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../36073/behavioural-economics-consumer-biases-nudge-theory-hl-only-1.html" title="Behavioural economics: Consumer biases / nudge theory (HL only)">Behavioural economics: Consumer biases / nudge theory (HL only)</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../20378/business-objectives-hl-only.html" title="Business objectives (HL only)">Business objectives (HL only)</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../28741/unit-21-24-review-terms--1.html" title="Unit 2.1-2.4: Review terms ">Unit 2.1-2.4: Review terms </a></li></ul><li class=" parent" style="padding-left: 14px"><i class="expander fa fa-caret-right "></i><a class="" href="../20195/unit-25-26-elasticity-1.html" title="Unit 2.5-2.6: Elasticity">Unit 2.5-2.6: Elasticity</a></li><ul class="level-2 "><li class=" parent" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../28713/unit-25-price-elasticity-of-demand-1.html" title="Unit 2.5: Price elasticity of demand">Unit 2.5: Price elasticity of demand</a></li><ul class="level-3 "><li class="" style="padding-left: 42px"><i class="expander fa fa-caret-right "></i><a class="" href="../21545/determinants-of-price-elasticity-.html" title="Determinants of price elasticity ">Determinants of price elasticity </a></li><li class="" style="padding-left: 42px"><i class="expander fa fa-caret-right "></i><a class="" href="../21532/ped-elasticity-and-sales-revenue.html" title="PED elasticity and sales revenue?">PED elasticity and sales revenue?</a></li></ul><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../21259/unit-25-income-elasticity-of-demand-yed.html" title="Unit 2.5: Income elasticity of demand (YED)">Unit 2.5: Income elasticity of demand (YED)</a></li><li class=" parent" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../21200/unit-26-price-elasticity-of-supply.html" title="Unit 2.6: Price elasticity of supply">Unit 2.6: Price elasticity of supply</a></li><ul class="level-3 "><li class="" style="padding-left: 42px"><i class="expander fa fa-caret-right "></i><a class="" href="../20207/perfectly-elastic-inelastic-supply-curves.html" title="Perfectly elastic / inelastic supply curves">Perfectly elastic / inelastic supply curves</a></li></ul><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../20230/a-mathematical-note-about-elasticity-.html" title="A mathematical note about elasticity ">A mathematical note about elasticity </a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../39037/demand-and-supply-crossword.html" title="Demand and supply crossword">Demand and supply crossword</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../29021/unit-25-26-review-terms-1.html" title="Unit 2.5-2.6: Review terms">Unit 2.5-2.6: Review terms</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../20474/unit-25-26-multiple-choice-quiz--1.html" title="Unit 2.5-2.6: Multiple choice quiz ">Unit 2.5-2.6: Multiple choice quiz </a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../44474/unit-21-25-competitive-markets-quiz-1.html" title="Unit 2.1- 2.5: Competitive markets quiz">Unit 2.1- 2.5: Competitive markets quiz</a></li></ul><li class=" parent" style="padding-left: 14px"><i class="expander fa fa-caret-right "></i><a class="" href="../20243/unit-27-the-role-of-government-in-microeconomics--1.html" title="Unit 2.7: The role of government in microeconomics ">Unit 2.7: The role of government in microeconomics </a></li><ul class="level-2 "><li class=" parent" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../26590/indirect-taxation.html" title="Indirect taxation">Indirect taxation</a></li><ul class="level-3 "><li class="" style="padding-left: 42px"><i class="expander fa fa-caret-right "></i><a class="" href="../20246/ped-and-the-burden-of-tax-hl-only-.html" title="PED and the burden of tax (HL only) ">PED and the burden of tax (HL only) </a></li></ul><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../20277/government-subsidies--1.html" title="Government subsidies ">Government subsidies </a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../29117/unit-27-indirect-tax-and-subsidy-review-terms-1.html" title="Unit 2.7: Indirect tax and subsidy review terms">Unit 2.7: Indirect tax and subsidy review terms</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../20287/price-controls-maximum-price--1.html" title="Price controls − maximum price ">Price controls − maximum price </a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../20288/minimum-price-.html" title="Minimum price ">Minimum price </a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../21540/minimum-wage-.html" title="Minimum wage ">Minimum wage </a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../38849/labour-market-crossword-1.html" title="Labour market crossword">Labour market crossword</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../29260/unit-27-price-controls-review-terms-1.html" title="Unit 2.7: Price controls review terms">Unit 2.7: Price controls review terms</a></li></ul><li class=" parent" style="padding-left: 14px"><i class="expander fa fa-caret-right "></i><a class="" href="../20303/unit-28-210-market-failure--1.html" title="Unit 2.8-2.10: Market failure ">Unit 2.8-2.10: Market failure </a></li><ul class="level-2 "><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../21543/unit-28-merit-goods--1.html" title="Unit 2.8: Merit goods ">Unit 2.8: Merit goods </a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../23123/unit-28-demerit-goods-negative-externalities-1.html" title="Unit 2.8: Demerit goods / negative externalities">Unit 2.8: Demerit goods / negative externalities</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../38850/market-failure-crossword-1.html" title="Market failure crossword">Market failure crossword</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../29262/unit-29-economics-of-the-environment-and-public-goods--1.html" title="Unit 2.9: Economics of the environment and public goods ">Unit 2.9: Economics of the environment and public goods </a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../20332/unit-210-asymmetric-information-hl-only-1.html" title="Unit 2.10: Asymmetric information (HL only)">Unit 2.10: Asymmetric information (HL only)</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../29828/unit-28-210-market-failure-review-sheet.html" title="Unit 2.8-2.10: Market failure review sheet">Unit 2.8-2.10: Market failure review sheet</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../29827/unit-28-210-market-failure-review-terms.html" title="Unit 2.8-2.10: Market failure review terms">Unit 2.8-2.10: Market failure review terms</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../20479/unit-27-210-multiple-choice-quiz--1.html" title="Unit 2.7-2.10: Multiple choice quiz ">Unit 2.7-2.10: Multiple choice quiz </a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../44501/unit-27-210-government-failure-revision-quiz-1.html" title="Unit 2.7-2.10 Government failure revision quiz">Unit 2.7-2.10 Government failure revision quiz</a></li></ul><li class="ancestor parent" style="padding-left: 14px"><i class="expander fa fa-caret-right fa-rotate-90"></i><a class="" href="../20330/unit-211-market-power-hl-only-1.html" title="Unit 2.11: Market power (HL only)">Unit 2.11: Market power (HL only)</a></li><ul class="level-2 expanded"><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../29835/assessment-map.html" title="Assessment map">Assessment map</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../21528/production-hl-only.html" title="Production (HL only)">Production (HL only)</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../29978/revenue-theory-hl-only.html" title="Revenue theory (HL only)">Revenue theory (HL only)</a></li><li class=" parent" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../20357/costs-of-production-hl-only.html" title="Costs of production (HL only)">Costs of production (HL only)</a></li><ul class="level-3 "><li class="" style="padding-left: 42px"><i class="expander fa fa-caret-right "></i><a class="" href="../21286/economies-and-diseconomies-of-scale-hl-only.html" title="Economies and diseconomies of scale (HL only)">Economies and diseconomies of scale (HL only)</a></li><li class="" style="padding-left: 42px"><i class="expander fa fa-caret-right "></i><a class="" href="../22494/long-run-average-cost-curves-hl-only.html" title="Long run average cost curves (HL only)">Long run average cost curves (HL only)</a></li><li class="" style="padding-left: 42px"><i class="expander fa fa-caret-right "></i><a class="" href="../29838/breakeven-hl-only.html" title="Breakeven (HL only)">Breakeven (HL only)</a></li></ul><li class="current" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="economic-profit-hl-only.html" title="Economic profit (HL only)">Economic profit (HL only)</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../39082/market-power-crossword.html" title="Market power crossword">Market power crossword</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../22495/revision-exercise-on-cost-and-revenue-hl-only.html" title="Revision exercise on cost and revenue (HL only)">Revision exercise on cost and revenue (HL only)</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../29845/unit-211-costs-revenue-and-profit-review-sheet-hl-only.html" title="Unit 2.11: Costs, revenue and profit review sheet (HL only)">Unit 2.11: Costs, revenue and profit review sheet (HL only)</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../44484/unit-211-multiple-choice-quiz-sl-units-1.html" title="Unit 2.11: Multiple choice quiz (SL units)">Unit 2.11: Multiple choice quiz (SL units)</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../29846/market-structures-hl-only-1.html" title="Market structures (HL only)">Market structures (HL only)</a></li><li class=" parent" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../29981/perfect-competition-hl-only-1.html" title="Perfect competition (HL only)">Perfect competition (HL only)</a></li><ul class="level-3 "><li class="" style="padding-left: 42px"><i class="expander fa fa-caret-right "></i><a class="" href="../24486/profit-in-perfect-competition-hl-only-1.html" title="Profit in perfect competition (HL only)">Profit in perfect competition (HL only)</a></li><li class="" style="padding-left: 42px"><i class="expander fa fa-caret-right "></i><a class="" href="../21302/efficiency-in-perfect-competition-hl-only.html" title="Efficiency in perfect competition (HL only)">Efficiency in perfect competition (HL only)</a></li></ul><li class=" parent" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../20430/monopoly-hl-only-1.html" title="Monopoly (HL only)">Monopoly (HL only)</a></li><ul class="level-3 "><li class="" style="padding-left: 42px"><i class="expander fa fa-caret-right "></i><a class="" href="../24529/profit-and-revenue-maximisation-in-monopoly-hl-only-1.html" title="Profit and revenue maximisation in monopoly (HL only)">Profit and revenue maximisation in monopoly (HL only)</a></li><li class="" style="padding-left: 42px"><i class="expander fa fa-caret-right "></i><a class="" href="../21306/a-comparison-of-monopoly-and-perfect-competition-hl-only-1.html" title="A comparison of monopoly and perfect competition? (HL only)">A comparison of monopoly and perfect competition? (HL only)</a></li></ul><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../20435/monopolistic-competition-hl-only-1.html" title="Monopolistic competition (HL only)">Monopolistic competition (HL only)</a></li><li class=" parent" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../20436/oligopoly-hl-only-1.html" title="Oligopoly (HL only)">Oligopoly (HL only)</a></li><ul class="level-3 "><li class="" style="padding-left: 42px"><i class="expander fa fa-caret-right "></i><a class="" href="../22310/game-theory-hl-only-1.html" title="Game theory (HL only)">Game theory (HL only)</a></li></ul><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../29918/unit-211-market-structures-review-sheet-hl-only-1.html" title="Unit 2.11: Market structures review sheet (HL only)">Unit 2.11: Market structures review sheet (HL only)</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../32337/unit-211-diagram-revision-.html" title="Unit 2.11: Diagram revision ">Unit 2.11: Diagram revision </a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../20480/unit-211-multiple-choice-quiz-hl-only-1.html" title="Unit 2.11: Multiple choice quiz (HL only)">Unit 2.11: Multiple choice quiz (HL only)</a></li></ul><li class="" style="padding-left: 14px"><i class="expander fa fa-caret-right "></i><a class="" href="../32425/unit-212-the-markets-inability-to-achieve-equity-hl-only-1.html" title="Unit 2.12: The market’s inability to achieve equity (HL only)">Unit 2.12: The market’s inability to achieve equity (HL only)</a></li></ul><li class=" parent std-toplevel" style="padding-left: 4px"><i class="expander fa fa-caret-right "></i><a class="" href="../21842/unit-3-macroeconomics-.html" title="Unit 3: Macroeconomics ">Unit 3: Macroeconomics </a></li><ul class="level-1 "><li class=" parent" style="padding-left: 14px"><i class="expander fa fa-caret-right "></i><a class="" href="../3942/unit-31-measuring-economic-activity-and-illustrating-its-variati-1.html" title="Unit 3.1: Measuring economic activity and illustrating its variations">Unit 3.1: Measuring economic activity and illustrating its variations</a></li><ul class="level-2 "><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../20558/calculating-national-income-1.html" title="Calculating national income">Calculating national income</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../21297/gdp-gni-as-a-measure-of-living-standards.html" title="GDP / GNI as a measure of living standards">GDP / GNI as a measure of living standards</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../20567/national-income-statistics-1.html" title="National income statistics">National income statistics</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../21580/the-business-cycle-1.html" title="The business cycle">The business cycle</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../29931/unit-31-economic-activity-review-sheet-1.html" title="Unit 3.1: Economic activity review sheet">Unit 3.1: Economic activity review sheet</a></li></ul><li class=" parent" style="padding-left: 14px"><i class="expander fa fa-caret-right "></i><a class="" href="../20592/unit-32-variations-in-economic-activityaggregate-demand-and-aggr-1.html" title="Unit 3.2: Variations in economic activity—aggregate demand and aggregate supply">Unit 3.2: Variations in economic activity—aggregate demand and aggregate supply</a></li><ul class="level-2 "><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../29933/aggregate-demand-and-supply.html" title="Aggregate demand and supply">Aggregate demand and supply</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../21582/components-of-aggregate-demand-1.html" title="Components of aggregate demand">Components of aggregate demand</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../20634/equilibrium-in-macroeconomics-neo-classical-perspective-1.html" title="Equilibrium in macroeconomics (neo-classical perspective)">Equilibrium in macroeconomics (neo-classical perspective)</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../20439/equilibrium-in-macroeconomics-keynesian-perspective-1.html" title="Equilibrium in macroeconomics (keynesian perspective)">Equilibrium in macroeconomics (keynesian perspective)</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../21349/john-maynard-keynes-1.html" title="John Maynard Keynes">John Maynard Keynes</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../20650/keynesian-v-free-market-debate--1.html" title="Keynesian v free market debate ">Keynesian v free market debate </a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../21342/changes-in-the-long-run-aggregate-supply-1.html" title="Changes in the long run aggregate supply">Changes in the long run aggregate supply</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../30055/unit-32-aggregate-demand-and-supply-review-sheet-1.html" title="Unit 3.2: Aggregate demand and supply review sheet">Unit 3.2: Aggregate demand and supply review sheet</a></li></ul><li class=" parent" style="padding-left: 14px"><i class="expander fa fa-caret-right "></i><a class="" href="../20610/unit-35-and-36-demand-management-fiscal-and-monetary-policy-1.html" title="Unit 3.5 and 3.6: Demand management - fiscal and monetary policy">Unit 3.5 and 3.6: Demand management - fiscal and monetary policy</a></li><ul class="level-2 "><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../30058/government-budget.html" title="Government budget">Government budget</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../21585/fiscal-policy--1.html" title="Fiscal policy ">Fiscal policy </a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../21343/multiplier-hl-only.html" title="Multiplier (HL only)">Multiplier (HL only)</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../21795/monetary-policy--1.html" title="Monetary policy ">Monetary policy </a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../30071/independent-central-banks-1.html" title="Independent central banks">Independent central banks</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../30083/unit-35-and-36-review-sheet.html" title="Unit 3.5 and 3.6 review sheet">Unit 3.5 and 3.6 review sheet</a></li></ul><li class=" parent" style="padding-left: 14px"><i class="expander fa fa-caret-right "></i><a class="" href="../20615/unit-37-supply-side-policies-1.html" title="Unit 3.7: Supply side policies">Unit 3.7: Supply side policies</a></li><ul class="level-2 "><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../20651/the-role-of-supply-side-policies-1.html" title="The role of supply side policies">The role of supply side policies</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../20622/market-based-and-interventionist-supply-side-policies--1.html" title="Market based and interventionist supply side policies ">Market based and interventionist supply side policies </a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../39129/aggregate-demand-and-supply-crossword-1.html" title="Aggregate demand and supply crossword">Aggregate demand and supply crossword</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../30086/unit-37-review-sheet-1.html" title="Unit 3.7: Review sheet">Unit 3.7: Review sheet</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../20755/unit-31-32-and-35-37-multiple-choice-quiz--1.html" title="Unit 3.1-3.2 and 3.5-3.7: Multiple choice quiz ">Unit 3.1-3.2 and 3.5-3.7: Multiple choice quiz </a></li></ul><li class="" style="padding-left: 14px"><i class="expander fa fa-caret-right "></i><a class="" href="../44522/unit-31-32-and-35-37-revision-quiz-1.html" title="Unit 3.1-3.2 and 3.5-3.7: Revision quiz">Unit 3.1-3.2 and 3.5-3.7: Revision quiz</a></li><li class=" parent" style="padding-left: 14px"><i class="expander fa fa-caret-right "></i><a class="" href="../20686/unit-33-macroeconomic-objectives.html" title="Unit 3.3: Macroeconomic objectives">Unit 3.3: Macroeconomic objectives</a></li><ul class="level-2 "><li class=" parent" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../30118/unemployment.html" title="Unemployment">Unemployment</a></li><ul class="level-3 "><li class="" style="padding-left: 42px"><i class="expander fa fa-caret-right "></i><a class="" href="../21351/types-of-unemployment.html" title="Types of unemployment?">Types of unemployment?</a></li><li class="" style="padding-left: 42px"><i class="expander fa fa-caret-right "></i><a class="" href="../21593/equilibrium-unemployment-.html" title="Equilibrium unemployment ">Equilibrium unemployment </a></li><li class="" style="padding-left: 42px"><i class="expander fa fa-caret-right "></i><a class="" href="../21594/disequilibrium-unemployment-1.html" title="Disequilibrium unemployment">Disequilibrium unemployment</a></li><li class="" style="padding-left: 42px"><i class="expander fa fa-caret-right "></i><a class="" href="../30458/unemployment-review-sheet-1.html" title="Unemployment review sheet">Unemployment review sheet</a></li></ul><li class=" parent" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../20713/inflation--1.html" title="Inflation ">Inflation </a></li><ul class="level-3 "><li class="" style="padding-left: 42px"><i class="expander fa fa-caret-right "></i><a class="" href="../20712/measuring-inflation-hl-only-1.html" title="Measuring inflation (HL only)">Measuring inflation (HL only)</a></li><li class="" style="padding-left: 42px"><i class="expander fa fa-caret-right "></i><a class="" href="../20685/costs-of-inflation-and-deflation-1.html" title="Costs of inflation and deflation">Costs of inflation and deflation</a></li><li class="" style="padding-left: 42px"><i class="expander fa fa-caret-right "></i><a class="" href="../30465/inflation-review-sheet.html" title="Inflation review sheet">Inflation review sheet</a></li></ul><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../20716/unemployment-v-inflation-trade-off-hl-only-1.html" title="Unemployment v inflation trade off (HL only)">Unemployment v inflation trade off (HL only)</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../39133/macroeconomic-objectives-crossword-1.html" title="Macroeconomic objectives crossword">Macroeconomic objectives crossword</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../44511/unit-33-macroeconomic-indicators-revision-quiz-1.html" title="Unit 3.3: Macroeconomic indicators revision quiz">Unit 3.3: Macroeconomic indicators revision quiz</a></li></ul><li class=" parent" style="padding-left: 14px"><i class="expander fa fa-caret-right "></i><a class="" href="../20741/unit-34-economics-of-inequality-and-poverty-1.html" title="Unit 3.4: Economics of inequality and poverty">Unit 3.4: Economics of inequality and poverty</a></li><ul class="level-2 "><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../32398/inequality-1.html" title="Inequality">Inequality</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../21356/the-role-of-spending-and-taxation-on-inequality--1.html" title="The role of spending and taxation on inequality ">The role of spending and taxation on inequality </a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../21313/consequences-of-economic-growth-1.html" title="Consequences of economic growth">Consequences of economic growth</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../30257/economic-growth-and-inequality-review-sheet-1.html" title="Economic growth and inequality review sheet">Economic growth and inequality review sheet</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../20756/unit-33-34-multiple-choice-.html" title="Unit 3.3-3.4: Multiple choice ">Unit 3.3-3.4: Multiple choice </a></li></ul></ul><li class=" parent std-toplevel" style="padding-left: 4px"><i class="expander fa fa-caret-right "></i><a class="" href="../21844/unit-4-global-economy.html" title="Unit 4: Global economy">Unit 4: Global economy</a></li><ul class="level-1 "><li class=" parent" style="padding-left: 14px"><i class="expander fa fa-caret-right "></i><a class="" href="../21367/unit-41-benefits-of-international-trade.html" title="Unit 4.1: Benefits of international trade">Unit 4.1: Benefits of international trade</a></li><ul class="level-2 "><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../30529/benefits-of-international-trade.html" title="Benefits of international trade">Benefits of international trade</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../20823/absolute-and-comparative-advantage-hl-only-1.html" title="Absolute and comparative advantage (HL only)">Absolute and comparative advantage (HL only)</a></li></ul><li class=" parent" style="padding-left: 14px"><i class="expander fa fa-caret-right "></i><a class="" href="../20845/unit-42-43-trade-protection-1.html" title="Unit 4.2-4.3: Trade protection">Unit 4.2-4.3: Trade protection</a></li><ul class="level-2 "><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../32419/barriers-to-trade-calculations-are-hl-only-1.html" title="Barriers to trade (calculations are HL only)">Barriers to trade (calculations are HL only)</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../21610/case-study-on-tata-steel-1.html" title="Case study on Tata Steel">Case study on Tata Steel</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../23455/the-defence-industry-1.html" title="The Defence industry">The Defence industry</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../30610/unit-41-43-review-sheet-1.html" title="Unit 4.1-4.3: Review sheet">Unit 4.1-4.3: Review sheet</a></li></ul><li class=" parent" style="padding-left: 14px"><i class="expander fa fa-caret-right "></i><a class="" href="../20894/unit-44-economic-integration--1.html" title="Unit 4.4: Economic integration ">Unit 4.4: Economic integration </a></li><ul class="level-2 "><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../30634/economic-integration-some-hl-tasks-1.html" title="Economic integration (some HL tasks)">Economic integration (some HL tasks)</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../20840/world-trade-organisation-wto-1.html" title="World trade organisation (WTO)">World trade organisation (WTO)</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../30635/unit-44-review-sheet-1.html" title="Unit 4.4: Review sheet">Unit 4.4: Review sheet</a></li></ul><li class=" parent" style="padding-left: 14px"><i class="expander fa fa-caret-right "></i><a class="" href="../20853/unit-45-exchange-rates-1.html" title="Unit 4.5: Exchange rates">Unit 4.5: Exchange rates</a></li><ul class="level-2 "><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../30611/floating-exchange-rates-1.html" title="Floating exchange rates">Floating exchange rates</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../31824/fixed-managed-exchange-rate-systems-some-hl-tasks-1.html" title="Fixed / managed exchange rate systems (some HL tasks)">Fixed / managed exchange rate systems (some HL tasks)</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../21624/the-market-for-foreign-exchange-1.html" title="The market for foreign exchange">The market for foreign exchange</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../30614/unit-45-review-sheet-1.html" title="Unit 4.5: Review sheet">Unit 4.5: Review sheet</a></li></ul><li class=" parent" style="padding-left: 14px"><i class="expander fa fa-caret-right "></i><a class="" href="../20859/unit-46-balance-of-payments-1.html" title="Unit 4.6: Balance of payments">Unit 4.6: Balance of payments</a></li><ul class="level-2 "><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../30624/balance-of-payments--1.html" title="Balance of payments ">Balance of payments </a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../21386/current-account-hl-only-1.html" title="Current account (HL only)">Current account (HL only)</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../20872/the-marshall-lerner-condition-j-curve-hl-only-1.html" title="The Marshall-Lerner condition / J curve (HL only)">The Marshall-Lerner condition / J curve (HL only)</a></li></ul><li class="" style="padding-left: 14px"><i class="expander fa fa-caret-right "></i><a class="" href="../20899/units-41-46-multiple-choice-quiz--1.html" title="Units 4.1-4.6: Multiple choice quiz ">Units 4.1-4.6: Multiple choice quiz </a></li><li class="" style="padding-left: 14px"><i class="expander fa fa-caret-right "></i><a class="" href="../42989/unit-41-46-multiple-choice-quiz-ii-1.html" title="Unit 4.1-4.6: Multiple choice quiz II">Unit 4.1-4.6: Multiple choice quiz II</a></li><li class="" style="padding-left: 14px"><i class="expander fa fa-caret-right "></i><a class="" href="../39438/unit-41-46-international-trade-crossword-1.html" title="Unit 4.1-4.6: International trade crossword">Unit 4.1-4.6: International trade crossword</a></li><li class=" parent" style="padding-left: 14px"><i class="expander fa fa-caret-right "></i><a class="" href="../32423/unit-47-sustainable-development--1.html" title="Unit 4.7: Sustainable development ">Unit 4.7: Sustainable development </a></li><ul class="level-2 "><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../26092/water-scarcity-activity-1.html" title="Water scarcity activity">Water scarcity activity</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../32426/sustainable-development.html" title="Sustainable development">Sustainable development</a></li></ul><li class=" parent" style="padding-left: 14px"><i class="expander fa fa-caret-right "></i><a class="" href="../20928/unit-48-measuring-development--1.html" title="Unit 4.8: Measuring development ">Unit 4.8: Measuring development </a></li><ul class="level-2 "><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../30686/measuring-development-1.html" title="Measuring development">Measuring development</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../21627/economic-development--1.html" title="Economic development ">Economic development </a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../30679/unit-47-48-review-sheet.html" title="Unit 4.7-4.8: Review sheet">Unit 4.7-4.8: Review sheet</a></li></ul><li class=" parent" style="padding-left: 14px"><i class="expander fa fa-caret-right "></i><a class="std-disabled" href="#" title="Unit 4.9: Barriers to development">Unit 4.9: Barriers to development</a></li><ul class="level-2 "><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../30727/barriers-to-development-in-international-trade-1.html" title="Barriers to development in International trade">Barriers to development in International trade</a></li></ul><li class=" parent" style="padding-left: 14px"><i class="expander fa fa-caret-right "></i><a class="" href="../32430/unit-410-economic-growth-andor-economic-development-strategies-1.html" title="Unit 4.10: Economic growth and/or economic development strategies">Unit 4.10: Economic growth and/or economic development strategies</a></li><ul class="level-2 "><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../30687/the-role-of-domestic-factors-1.html" title="The role of domestic factors">The role of domestic factors</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../30688/the-role-of-international-trade-and-development-1.html" title="The role of international trade and development">The role of international trade and development</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../30689/the-role-of-foreign-direct-investment-fdi-1.html" title="The role of foreign direct investment (FDI)">The role of foreign direct investment (FDI)</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../25240/the-role-of-foreign-aid--1.html" title="The role of foreign aid ">The role of foreign aid </a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../30819/multilateral-development-assistance-1.html" title="Multilateral development assistance">Multilateral development assistance</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../21632/the-role-of-international-debt-1.html" title="The role of international debt">The role of international debt</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../25242/the-balance-between-markets-and-intervention-1.html" title="The balance between markets and intervention">The balance between markets and intervention</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../30926/unit-49-410-review-sheet.html" title="Unit 4.9 - 4.10: Review sheet">Unit 4.9 - 4.10: Review sheet</a></li></ul></ul><li class=" parent std-toplevel" style="padding-left: 4px"><i class="expander fa fa-caret-right "></i><a class="" href="../21380/assessment.html" title="Assessment">Assessment</a></li><ul class="level-1 "><li class=" parent" style="padding-left: 14px"><i class="expander fa fa-caret-right "></i><a class="std-disabled" href="#" title="Internal assessment ">Internal assessment </a></li><ul class="level-2 "><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../20608/how-to-write-your-ia-student-handout.html" title="How to write your IA? 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(student handout)</a></li><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../21428/how-to-interpret-the-assessment-criteria-1.html" title="How to interpret the assessment criteria?">How to interpret the assessment criteria?</a></li><li class=" parent" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="std-disabled" href="#" title="Grading practise ">Grading practise </a></li><ul class="level-3 "><li class=" parent" style="padding-left: 42px"><i class="expander fa fa-caret-right "></i><a class="std-disabled" href="#" title="Sample 3a">Sample 3a</a></li><ul class="level-4 "><li class="" style="padding-left: 56px"><i class="expander fa fa-caret-right "></i><a class="" href="../32083/sample-3b-1.html" title="Sample 3b">Sample 3b</a></li></ul></ul></ul><li class="" style="padding-left: 14px"><i class="expander fa fa-caret-right "></i><a class="" href="../32022/assessment-markbands-1.html" title="Assessment markbands">Assessment markbands</a></li></ul><li class=" parent std-toplevel" style="padding-left: 4px"><i class="expander fa fa-caret-right "></i><a class="" href="../4332/exam-style-questions.html" title="Exam style questions">Exam style questions</a></li><ul class="level-1 "><li class=" parent" style="padding-left: 14px"><i class="expander fa fa-caret-right "></i><a class="std-disabled" href="#" title="Paper 1 style examination questions">Paper 1 style examination questions</a></li><ul class="level-2 "><li class="" style="padding-left: 28px"><i class="expander fa fa-caret-right "></i><a class="" href="../40100/unit-211-212-questions.html" title="Unit 2.11-2.12 questions">Unit 2.11-2.12 questions</a></li></ul><li class="" style="padding-left: 14px"><i class="expander fa fa-caret-right "></i><a class="" href="../45102/paper-1-guidance-on-essay-writing-1.html" title="Paper 1 guidance on essay writing">Paper 1 guidance on essay writing</a></li></ul></ul></nav> </div> </div> </div> </div><div style="margin-top: 20px;"><style type="text/css">
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<div id="main-column" class="span9"> <article id="economic-profit-hl-only" style="margin-top: 16px;">
<h1 class="section-title">Economic profit (HL only)</h1>
<ul class="breadcrumb"><li><a title="Home" href="../../../economics.html"><i class="fa fa-home"></i></a><span class="divider">/</span></li><li><span class="gray">Units 1-2: Microeconomics</span><span class="divider">/</span></li><li><a title="Go to: Unit 2.11: Market power (HL only)" href="../20330/unit-211-market-power-hl-only-1.html">Unit 2.11: Market power (HL only)</a><span class="divider">/</span></li><li><span class="active">Economic profit (HL only)</span></li></ul>
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<h2><img alt="" src="../../../ib/economics/images/micro-economics-2/profit-resized.jpg" style="float: left; width: 327px; height: 223px;" title="https://jetstreamadmin.com/">Introduction</h2><p>This lesson looks at the different types of economic profit − normal (zero profit), abnormal (economic profit) and loss (negative economic profit). Implicit costs (that make up economic profit) are no longer part of the new syllabus.</p><hr class="hidden"><div class="blueBg"><h3>Enquiry question</h3><p>What are the different types of profit in business - normal profit, loss and abnormal profit levels and how can we illustrate each on a diagram.</p></div><div class="blueBg"><h4><img alt="" height="185" src="../../../ib/economics/images/costs-and-revenue/empty-quarter.jpg" style="float: right;" title="The empty quarter, Saudi Arabia" width="341"> Teacher notes</h4><p><strong>Lesson time: </strong>80 minutes</p><p><strong>Lesson objectives:</strong></p><p>Describe different types of profit within businesses. </p><p>Recognise that economic profit (abnormal profit) is the case where total revenue exceeds economic cost.</p><p>Explain the concept of normal profit (zero economic profit) as the amount of revenue needed to cover the costs of employing self-owned resources.</p><p>Explain the meaning of loss as negative economic profit arising when total revenue is less than total cost.</p><p>Explain why a firm will continue to operate even when it earns zero economic profit (abnormal profit).</p><p>Calculate different profit levels from a set of data.</p><p>Illustrate different profit levels using diagrams.</p><p><strong>Teacher notes:</strong></p><section class="tib-hiddenbox"><p><span style="color:#FF0000;"><strong>1.</strong> <strong>Beginning activity </strong>- begin with the opening question and allow 5 minutes for discussion.</span></p><p><span style="color:#FF0000;"><strong>2.</strong> <strong>Processes</strong> -<strong> technical Vocabulary </strong>-<strong> </strong>the students can learn the key concepts through the initial video and handout which should take 15 minutes to go through and discuss. (15 minutes)</span></p><p><span style="color:#FF0000;"> <strong>3. Diagram practise </strong>- activity 1<strong>, </strong>included on the handout requires your classes to practise drawing the appropriate diagrams for each of the three types of profit. I start by having each draw three identical diagrams, with MC=MR. I draw the same three diagrams on the whiteboard. Then I will usually ask a volunteer to come up to the board and simply by drawing three AC curves, the 3 diagrams are complete. Allocate 15 minutes for this exercise.</span></p><p><span style="color:#FF0000;"><strong>4. Paper three practise activities - </strong>the handout also includes three paper three practise activities. I don't generally require every student to complete all three but the third is there for the advanced students who want more practise. (30 minutes)</span></p><p><span style="color:#FF0000;"><strong>5. Reflective activity 5 </strong>- includes a paper one, section A style question including a suggested response. (5 minutes). This could also be set as a homework or classwork exercise.</span></p><p><span style="color:#FF0000;"><strong>6. Practical application of profit </strong>- includes a video showing a short lecture of why many start up companies but some do not? Allow 10 minutes for this video and short discussion. </span></p></section></div><div class="pinkBg"><h4>Beginning question</h4><p>Imagine that you resign from a well paid job earning $ 90,000 per year and set up a business. What would your break-even level of profit be?</p><section class="tib-hiddenbox"><p><span style="color:#FF0000;">As you will have learnt during the previous lesson the answer may surprise you, it is not $0 as you would expect but $ 90,000. This being the amount that you would need to earn in order to cover your opportunity costs? In economics we call this level normal profit, rather than break-even.</span></p></section></div><div class="blueBg"><h4>Beginning activity</h4><p>Begin this lesson by taking a look at the following video and then explain what you have learnt about the difference between revenue, expenses (costs) and profit. </p><p style="text-align: center;"><iframe allowfullscreen="" frameborder="0" height="360" src="//www.youtube.com/embed/ksnKQpdMgL0" width="640"></iframe></p></div><section class="tib-hiddenbox"><p><span style="color:#FF0000;">Revenue is money coming into the business</span></p><p><span style="color:#FF0000;">Cost is money that the firm pays (do not confuse this with costs that you as a consumer pays_</span></p><p><span style="color:#FF0000;">Profit = revenue minus cost.</span></p></section><div class="greenBg"><h4><img alt="" src="../../../ib/economics/images/costs-and-revenue/normal-profit-graph.jpg" style="width: 300px; height: 300px; float: right;"><strong><em>Key terms: </em></strong></h4><p><em><strong>Profit: </strong></em>Calculated by revenue (sales revenue) minus cost</p><p><em><strong>Profit maximising level of output</strong>: Where MC=MR</em></p><p><em><strong>Normal profit:</strong> AR=AC or TR=TC, when the revenue coming into the business equals the costs or running the business, including the implicit costs</em></p><p><em><strong>Abnormal profit:</strong> AR > AC or TR >TC, when the revenue coming into the business more than covers the costs of running the business, including the implicit costs</em></p><p><strong>Loss</strong>: AR < AC or TR < TC, when the revenue coming into the business is insufficient to cover the costs of running the business, including the implicit costs.</p></div><p>The activities can be downloaded as a PDF file at: <a href="../../../media/ib/economics/files/theory-of-the-firm/economic-profit.pdf.html" target="_blank" title="Student handouts"><img class="ico" src="../../../thinkib/icons/student-handout.png"> Economic profit</a> </p><div class="blueBg"><h4><strong>Activity 1: Complete the table, showing the profit made by the businesses</strong></h4><table border="3" cellpadding="0" cellspacing="0"><tbody><tr><td style="text-align: center;"></td><td style="text-align: center;"><strong>Firm X</strong></td><td style="text-align: center;"><strong>Firm Y</strong></td><td style="text-align: center;"><strong>Firm Z</strong></td></tr><tr><td style="text-align: center;"><strong>Total revenue ($)</strong></td><td style="text-align: center;">500,000</td><td style="text-align: center;">900,000</td><td style="text-align: center;">350,000</td></tr><tr><td style="text-align: center;"><strong>Total fixed cost ($)</strong></td><td style="text-align: center;">150,000</td><td style="text-align: center;">400,000</td><td style="text-align: center;">100,000</td></tr><tr><td style="text-align: center;"><strong>Total variable cost ($)</strong></td><td style="text-align: center;">350,000</td><td style="text-align: center;">700,000</td><td style="text-align: center;">150,000</td></tr><tr><td style="text-align: center;"><strong>Total economic cost ($)</strong></td><td style="text-align: center;"><section class="tib-hiddenbox"><p><span style="color:#FF0000;">500,000</span></p></section></td><td style="text-align: center;"><section class="tib-hiddenbox"><p><span style="color:#FF0000;">1,100,000</span></p></section></td><td style="text-align: center;"><section class="tib-hiddenbox"><p><span style="color:#FF0000;">250,000</span></p></section></td></tr><tr><td style="text-align: center;"><strong>Economic profit ($)</strong></td><td style="text-align: center;"><section class="tib-hiddenbox"><p><span style="color:#FF0000;">0 (normal profit)</span></p></section></td><td style="text-align: center;"><section class="tib-hiddenbox"><p><span style="color:#FF0000;">200,000 (loss)</span></p></section></td><td style="text-align: center;"><section class="tib-hiddenbox"><p><span style="color:#FF0000;">100,000 (abnormal profit)</span></p></section></td></tr></tbody></table></div><div class="greenBg"><p><u>A note about profit maximising.</u> A firm producing where profit is maximised is not guaranteed to make abnormal profit. The company, for example might be making normal profit only or even be making a loss. However, the point where MC = MR will still represent the output level providing them with the lowest loss available to them.</p></div><div class="pinkBg"><h4><img alt="" src="../../../ib/economics/images/costs-and-revenue/2-po%C4%B1nts-of-mc%3Dmr.jpg" style="width: 320px; height: 320px; float: left;"><strong>Activity 2: When MR intersects at two different points on the MC curve</strong></h4><p>The diagram to the left illustrates the bottom section of a firms marginal costs. In this example, the MC curve intersects with the MR at two different points, illustrated on the diagram below at points A and B.</p><p>Which point should the profit maximising firm produce at?</p><section class="tib-hiddenbox"><p><span style="color:#FF0000;">It should be obvious that in this instance the profit maximising point is at the point where the MC curve intersects with the MR curve from below. A firm choosing to produce at point A on the diagram would miss out on the profit gained from all the units between Q1 and Q2 − each of those units has a higher MR than MC. </span></p></section></div><div class="pinkBg"><h4><strong>Activity 3: Paper three type questions</strong></h4><p>Watch the following short video, from ACDC economics and then use the information from the video to answer the 3 activities which follow:</p><p style="text-align: center;"><iframe allowfullscreen="" frameborder="0" height="360" src="//www.youtube.com/embed/qaQRM6WIxpA" width="640"></iframe></p></div><div class="pinkBg"><p>1. (a) Complete the following table:</p><table border="1" cellpadding="0" cellspacing="0" height="880" width="789"><tbody><tr><td style="width:16.84%;"><p align="center"><strong>Output level</strong></p></td><td style="width:18.28%;"><p align="center"><strong>Revenue from sales $ (000)</strong></p></td><td style="width:19.98%;"><p align="center"><strong>Total cost $ (000)</strong></p></td><td style="width:14.98%;"><p align="center"><strong>MR </strong></p></td><td style="width:11.64%;"><p align="center"><strong>MC </strong></p></td><td style="width:18.28%;"><p align="center"><strong>Total profit $ (000)</strong></p></td></tr><tr><td style="width:16.84%;"><p align="center">100</p></td><td style="width:18.28%;"><p align="center">350</p></td><td style="width:19.98%;"><p align="center">300</p></td><td style="width:14.98%;"></td><td style="width:11.64%;"></td><td style="width:18.28%;"><section class="tib-hiddenbox"><p style="text-align: center;"><span style="color:#FF0000;">50</span></p></section></td></tr><tr><td style="width:16.84%;"></td><td style="width:18.28%;"></td><td style="width:19.98%;"></td><td style="width:14.98%;"><section class="tib-hiddenbox"><p style="text-align: center;"><span style="color:#FF0000;">Δ in Revenue / <span style="color:#FF0000;">Δ</span> in output = 200/100=2</span></p></section></td><td style="width:11.64%;"><section class="tib-hiddenbox"><p style="text-align: center;"><span style="color:#FF0000;"><span style="color:#FF0000;">Δ in Costs / <span style="color:#FF0000;">Δ</span> in output = 60/100=</span>0.6</span></p></section></td><td style="width:18.28%;"></td></tr><tr><td style="width:16.84%;"><p align="center">200</p></td><td style="width:18.28%;"><p align="center">550</p></td><td style="width:19.98%;"><p align="center">360</p></td><td style="width:14.98%;"></td><td style="width:11.64%;"></td><td style="width:18.28%;"><section class="tib-hiddenbox"><p style="text-align: center;"><span style="color:#FF0000;">190</span></p></section></td></tr><tr><td style="width:16.84%;"></td><td style="width:18.28%;"></td><td style="width:19.98%;"></td><td style="width:14.98%;"><section class="tib-hiddenbox"><p style="text-align: center;"><span style="color:#FF0000;">1.6 (160/100)</span></p></section></td><td style="width:11.64%;"><section class="tib-hiddenbox"><p style="text-align: center;"><span style="color:#FF0000;">0.8 (80/100)</span></p></section></td><td style="width:18.28%;"></td></tr><tr><td style="width:16.84%;"><p align="center">300</p></td><td style="width:18.28%;"><p align="center">710</p></td><td style="width:19.98%;"><p align="center">440</p></td><td style="width:14.98%;"></td><td style="width:11.64%;"></td><td style="width:18.28%;"><section class="tib-hiddenbox"><p style="text-align: center;"><span style="color:#FF0000;">270</span></p></section></td></tr><tr><td style="width:16.84%;"></td><td style="width:18.28%;"></td><td style="width:19.98%;"></td><td style="width:14.98%;"><section class="tib-hiddenbox"><p style="text-align: center;"><span style="color:#FF0000;">1.2</span></p></section></td><td style="width:11.64%;"><section class="tib-hiddenbox"><p style="text-align: center;"><span style="color:#FF0000;">0.9</span></p></section></td><td style="width:18.28%;"></td></tr><tr><td style="width:16.84%;"><p align="center">400</p></td><td style="width:18.28%;"><p align="center">830</p></td><td style="width:19.98%;"><p align="center">530</p></td><td style="width:14.98%;"></td><td style="width:11.64%;"></td><td style="width:18.28%;"><section class="tib-hiddenbox"><p style="text-align: center;"><span style="color:#FF0000;">300</span></p></section></td></tr><tr><td style="width:16.84%;"></td><td style="width:18.28%;"></td><td style="width:19.98%;"></td><td style="width:14.98%;"><section class="tib-hiddenbox"><p style="text-align: center;"><strong>1</strong></p></section></td><td style="width:11.64%;"><section class="tib-hiddenbox"><p style="text-align: center;"><strong>1</strong></p></section></td><td style="width:18.28%;"></td></tr><tr><td style="width:16.84%;"><p align="center">500</p></td><td style="width:18.28%;"><p align="center">930</p></td><td style="width:19.98%;"><p align="center">630</p></td><td style="width:14.98%;"></td><td style="width:11.64%;"></td><td style="width:18.28%;"><section class="tib-hiddenbox"><p style="text-align: center;"><span style="color:#FF0000;">300</span></p></section></td></tr><tr><td style="width:16.84%;"></td><td style="width:18.28%;"></td><td style="width:19.98%;"></td><td style="width:14.98%;"><section class="tib-hiddenbox"><p style="text-align: center;"><span style="color:#FF0000;">0.8</span></p></section></td><td style="width:11.64%;"><section class="tib-hiddenbox"><p style="text-align: center;"><span style="color:#FF0000;">1.05</span></p></section></td><td style="width:18.28%;"></td></tr><tr><td style="width:16.84%;"><p align="center">600</p></td><td style="width:18.28%;"><p align="center">1,010</p></td><td style="width:19.98%;"><p align="center">735</p></td><td style="width:14.98%;"></td><td style="width:11.64%;"></td><td style="width:18.28%;"><section class="tib-hiddenbox"><p style="text-align: center;"><span style="color:#FF0000;">275</span></p></section></td></tr><tr><td style="width:16.84%;"></td><td style="width:18.28%;"></td><td style="width:19.98%;"></td><td style="width:14.98%;"><section class="tib-hiddenbox"><p style="text-align: center;"><span style="color:#FF0000;">0.7</span></p></section></td><td style="width:11.64%;"><section class="tib-hiddenbox"><p style="text-align: center;"><span style="color:#FF0000;">1.1</span></p></section></td><td style="width:18.28%;"></td></tr><tr><td style="width:16.84%;"><p align="center">700</p></td><td style="width:18.28%;"><p align="center">1,080</p></td><td style="width:19.98%;"><p align="center">845</p></td><td style="width:14.98%;"></td><td style="width:11.64%;"></td><td style="width:18.28%;"><section class="tib-hiddenbox"><p style="text-align: center;"><span style="color:#FF0000;">235</span></p></section></td></tr><tr><td style="width:16.84%;"></td><td style="width:18.28%;"></td><td style="width:19.98%;"></td><td style="width:14.98%;"><section class="tib-hiddenbox"><p style="text-align: center;"><span style="color:#FF0000;">0.6</span></p></section></td><td style="width:11.64%;"><section class="tib-hiddenbox"><p style="text-align: center;"><span style="color:#FF0000;">1.12</span></p></section></td><td style="width:18.28%;"></td></tr><tr><td style="width:16.84%;"><p align="center">800</p></td><td style="width:18.28%;"><p align="center">1,140</p></td><td style="width:19.98%;"><p align="center">957</p></td><td style="width:14.98%;"></td><td style="width:11.64%;"></td><td style="width:18.28%;"><section class="tib-hiddenbox"><p style="text-align: center;"><span style="color:#FF0000;">183</span></p></section></td></tr><tr><td style="width:16.84%;"></td><td style="width:18.28%;"></td><td style="width:19.98%;"></td><td style="width:14.98%;"><section class="tib-hiddenbox"><p style="text-align: center;"><span style="color:#FF0000;">0.5</span></p></section></td><td style="width:11.64%;"><section class="tib-hiddenbox"><p style="text-align: center;"><span style="color:#FF0000;">1.15</span></p></section></td><td style="width:18.28%;"></td></tr><tr><td style="width:16.84%;"><p align="center">900</p></td><td style="width:18.28%;"><p align="center">1,190</p></td><td style="width:19.98%;"><p align="center">1,072</p></td><td style="width:14.98%;"></td><td style="width:11.64%;"></td><td style="width:18.28%;"><section class="tib-hiddenbox"><p style="text-align: center;"><span style="color:#FF0000;">118</span></p></section></td></tr><tr><td style="width:16.84%;"></td><td style="width:18.28%;"></td><td style="width:19.98%;"></td><td style="width:14.98%;"><section class="tib-hiddenbox"><p style="text-align: center;"><span style="color:#FF0000;">0.4</span></p></section></td><td style="width:11.64%;"><section class="tib-hiddenbox"><p style="text-align: center;"><span style="color:#FF0000;">1.99</span></p></section></td><td style="width:18.28%;"></td></tr><tr><td style="width:16.84%;"><p align="center">1,000</p></td><td style="width:18.28%;"><p align="center">1,230</p></td><td style="width:19.98%;"><p align="center">1,271</p></td><td style="width:14.98%;"></td><td style="width:11.64%;"></td><td style="width:18.28%;"><section class="tib-hiddenbox"><p style="text-align: center;"><span style="color:#FF0000;">(41)</span></p></section></td></tr></tbody></table><p>(b) Illustrate the level of output at the profit maximising point.</p><p>(c) Illustrate the level of output at the revenue maximising point.</p></div><div class="pinkBg"><p>2. (a) Complete the following table:</p><table border="1" cellpadding="0" cellspacing="0" height="812" width="796"><tbody><tr><td style="width:13.64%;"><p align="center"><strong>Output </strong></p></td><td style="width:16.82%;"><p align="center"><strong>Sales revenue $ (000)</strong></p></td><td style="width:16.82%;"><p align="center"><strong>Total cost $ (000)</strong></p></td><td style="width:11.84%;"><p align="center"><strong>MR $</strong></p></td><td style="width:10.08%;"><p align="center"><strong>MC $</strong></p></td><td style="width:10.1%;"><p align="center"><strong>AR $</strong></p></td><td style="width:8.4%;"><p><strong>AC $</strong></p></td><td style="width:12.3%;"><p align="center"><strong>Profit $ (000)</strong></p></td></tr><tr><td style="width:13.64%;"><p align="center">10,000</p></td><td style="width:16.82%;"><p align="center">180</p></td><td style="width:16.82%;"><p align="center">60</p></td><td style="width:11.84%;"></td><td style="width:10.08%;"></td><td style="width:10.1%;"><section class="tib-hiddenbox"><p style="text-align: center;"><span style="color:#FF0000;">18 (TR/Q)</span></p></section></td><td style="width:8.4%;"><section class="tib-hiddenbox"><p style="text-align: center;"><span style="color:#FF0000;">6 (TC/Q)</span></p></section></td><td style="width:12.3%;"><section class="tib-hiddenbox"><p style="text-align: center;"><span style="color:#FF0000;">120 (TR-TC)</span></p></section></td></tr><tr><td style="width:13.64%;"></td><td style="width:16.82%;"></td><td style="width:16.82%;"></td><td style="width:11.84%;"><section class="tib-hiddenbox"><p style="text-align: center;"><span style="color:#FF0000;"><span style="color:#FF0000;">Δ in Revenue / <span style="color:#FF0000;">Δ</span> in output = 160/10=</span>16</span></p></section></td><td style="width:10.08%;"><section class="tib-hiddenbox"><p style="text-align: center;"><span style="color:#FF0000;"><span style="color:#FF0000;"><span style="color:#FF0000;">Δ in Costs / <span style="color:#FF0000;">Δ</span> in output = 40/10=</span></span>4</span></p></section></td><td style="width:10.1%;"></td><td style="width:8.4%;"></td><td style="width:12.3%;"></td></tr><tr><td style="width:13.64%;"><p align="center">20,000</p></td><td style="width:16.82%;"><p align="center">340</p></td><td style="width:16.82%;"><p align="center">100</p></td><td style="width:11.84%;"></td><td style="width:10.08%;"></td><td style="width:10.1%;"><section class="tib-hiddenbox"><p style="text-align: center;"><span style="color:#FF0000;">17</span></p></section></td><td style="width:8.4%;"><section class="tib-hiddenbox"><p style="text-align: center;"><span style="color:#FF0000;">5</span></p></section></td><td style="width:12.3%;"><section class="tib-hiddenbox"><p style="text-align: center;"><span style="color:#FF0000;">240</span></p></section></td></tr><tr><td style="width:13.64%;"></td><td style="width:16.82%;"></td><td style="width:16.82%;"></td><td style="width:11.84%;"><section class="tib-hiddenbox"><p style="text-align: center;"><span style="color:#FF0000;">14</span></p></section></td><td style="width:10.08%;"><section class="tib-hiddenbox"><p style="text-align: center;"><span style="color:#FF0000;">6</span></p></section></td><td style="width:10.1%;"></td><td style="width:8.4%;"></td><td style="width:12.3%;"></td></tr><tr><td style="width:13.64%;height:25px;"><p align="center">30,000</p></td><td style="width:16.82%;height:25px;"><p align="center">480</p></td><td style="width:16.82%;height:25px;"><p align="center">160</p></td><td style="width:11.84%;height:25px;"></td><td style="width:10.08%;height:25px;"></td><td style="width: 10.1%; height: 25px; text-align: center;"><section class="tib-hiddenbox"><p><span style="color:#FF0000;">16</span></p></section></td><td style="width:8.4%;height:25px;"><section class="tib-hiddenbox"><p style="text-align: center;"><span style="color:#FF0000;">5.33</span></p></section><p style="text-align: center;"></p></td><td style="width:12.3%;height:25px;"><section class="tib-hiddenbox"><p style="text-align: center;"><span style="color:#FF0000;">220</span></p></section></td></tr><tr><td style="width:13.64%;"></td><td style="width:16.82%;"></td><td style="width:16.82%;"></td><td style="width:11.84%;"><section class="tib-hiddenbox"><p style="text-align: center;"><span style="color:#FF0000;">12</span></p></section></td><td style="width:10.08%;"><section class="tib-hiddenbox"><p style="text-align: center;"><span style="color:#FF0000;">8</span></p></section></td><td style="width:10.1%;"></td><td style="width:8.4%;"></td><td style="width:12.3%;"></td></tr><tr><td style="width:13.64%;"><p align="center">40,000</p></td><td style="width:16.82%;"><p align="center">600</p></td><td style="width:16.82%;"><p align="center">240</p></td><td style="width:11.84%;"></td><td style="width:10.08%;"></td><td style="width:10.1%;"><section class="tib-hiddenbox"><p style="text-align: center;"><span style="color:#FF0000;">15</span></p></section></td><td style="width:8.4%;"><section class="tib-hiddenbox"><p style="text-align: center;"><span style="color:#FF0000;">6</span></p></section></td><td style="width:12.3%;"><section class="tib-hiddenbox"><p style="text-align: center;"><span style="color:#FF0000;">360</span></p></section></td></tr><tr><td style="width:13.64%;"></td><td style="width:16.82%;"></td><td style="width:16.82%;"></td><td style="width:11.84%;"><section class="tib-hiddenbox"><p style="text-align: center;"><strong>10</strong></p></section></td><td style="width:10.08%;"><section class="tib-hiddenbox"><p style="text-align: center;"><strong>10</strong></p></section></td><td style="width:10.1%;"></td><td style="width:8.4%;"></td><td style="width:12.3%;"></td></tr><tr><td style="width:13.64%;"><p align="center">50,000</p></td><td style="width:16.82%;"><p align="center">700</p></td><td style="width:16.82%;"><p align="center">340</p></td><td style="width:11.84%;"></td><td style="width:10.08%;"></td><td style="width:10.1%;"><section class="tib-hiddenbox"><p style="text-align: center;"><span style="color:#FF0000;">14</span></p></section></td><td style="width:8.4%;"><section class="tib-hiddenbox"><p style="text-align: center;"><span style="color:#FF0000;">6.8</span></p></section></td><td style="width:12.3%;"><section class="tib-hiddenbox"><p style="text-align: center;"><span style="color:#FF0000;">360</span></p></section></td></tr><tr><td style="width:13.64%;"></td><td style="width:16.82%;"></td><td style="width:16.82%;"></td><td style="width:11.84%;"><section class="tib-hiddenbox"><p style="text-align: center;"><span style="color:#FF0000;">8</span></p></section></td><td style="width:10.08%;"><section class="tib-hiddenbox"><p style="text-align: center;"><span style="color:#FF0000;">12</span></p></section></td><td style="width:10.1%;"></td><td style="width:8.4%;"></td><td style="width:12.3%;"></td></tr><tr><td style="width:13.64%;"><p align="center">60,000</p></td><td style="width:16.82%;"><p align="center">780</p></td><td style="width:16.82%;"><p align="center">460</p></td><td style="width:11.84%;"></td><td style="width:10.08%;"></td><td style="width:10.1%;"><section class="tib-hiddenbox"><p style="text-align: center;"><span style="color:#FF0000;">13</span></p></section></td><td style="width:8.4%;"><section class="tib-hiddenbox"><p style="text-align: center;"><span style="color:#FF0000;">7.67</span></p></section><p style="text-align: center;"><span style="color:#FF0000;"></span></p></td><td style="width:12.3%;"><section class="tib-hiddenbox"><p style="text-align: center;"><span style="color:#FF0000;">320</span></p></section></td></tr><tr><td style="width:13.64%;"></td><td style="width:16.82%;"></td><td style="width:16.82%;"></td><td style="width:11.84%;"><section class="tib-hiddenbox"><p style="text-align: center;"><span style="color:#FF0000;">6</span></p></section></td><td style="width:10.08%;"><section class="tib-hiddenbox"><p style="text-align: center;"><span style="color:#FF0000;">14</span></p></section></td><td style="width:10.1%;"></td><td style="width:8.4%;"></td><td style="width:12.3%;"></td></tr><tr><td style="width:13.64%;"><p align="center">70,000</p></td><td style="width:16.82%;"><p align="center">840</p></td><td style="width:16.82%;"><p align="center">600</p></td><td style="width:11.84%;"></td><td style="width:10.08%;"></td><td style="width:10.1%;"><section class="tib-hiddenbox"><p style="text-align: center;"><span style="color:#FF0000;">12</span></p></section><p style="text-align: center;"></p></td><td style="width:8.4%;"><section class="tib-hiddenbox"><p style="text-align: center;"><span style="color:#FF0000;">8.57</span></p></section></td><td style="width:12.3%;"><section class="tib-hiddenbox"><p style="text-align: center;"><span style="color:#FF0000;">240</span></p></section></td></tr><tr><td style="width:13.64%;"></td><td style="width:16.82%;"></td><td style="width:16.82%;"></td><td style="width:11.84%;"><section class="tib-hiddenbox"><p style="text-align: center;"><span style="color:#FF0000;">4</span></p></section></td><td style="width:10.08%;"><section class="tib-hiddenbox"><p style="text-align: center;"><span style="color:#FF0000;">16</span></p></section></td><td style="width:10.1%;"></td><td style="width:8.4%;"></td><td style="width:12.3%;"></td></tr><tr><td style="width:13.64%;"><p align="center">80,000</p></td><td style="width:16.82%;"><p align="center">880</p></td><td style="width:16.82%;"><p align="center">760</p></td><td style="width:11.84%;"></td><td style="width:10.08%;"></td><td style="width:10.1%;"><section class="tib-hiddenbox"><p style="text-align: center;"><span style="color:#FF0000;">11</span></p></section></td><td style="width:8.4%;"><section class="tib-hiddenbox"><p style="text-align: center;"><span style="color:#FF0000;">9.5</span></p></section></td><td style="width:12.3%;"><section class="tib-hiddenbox"><p style="text-align: center;"><span style="color:#FF0000;">120</span></p></section></td></tr><tr><td style="width:13.64%;"></td><td style="width:16.82%;"></td><td style="width:16.82%;"></td><td style="width:11.84%;"><section class="tib-hiddenbox"><p style="text-align: center;"><span style="color:#FF0000;">2</span></p></section></td><td style="width:10.08%;"><section class="tib-hiddenbox"><p style="text-align: center;"><span style="color:#FF0000;">18</span></p></section></td><td style="width:10.1%;"></td><td style="width:8.4%;"></td><td style="width:12.3%;"></td></tr><tr><td style="width:13.64%;"><p align="center">90,000</p></td><td style="width:16.82%;"><p align="center">900</p></td><td style="width:16.82%;"><p align="center">940</p></td><td style="width:11.84%;"></td><td style="width:10.08%;"></td><td style="width:10.1%;"><section class="tib-hiddenbox"><p style="text-align: center;"><span style="color:#FF0000;">10</span></p></section></td><td style="width:8.4%;"><section class="tib-hiddenbox"><p style="text-align: center;"><span style="color:#FF0000;">10.44</span></p></section></td><td style="width:12.3%;"><section class="tib-hiddenbox"><p style="text-align: center;"><span style="color:#FF0000;">(40)</span></p></section></td></tr></tbody></table><p>(b) Identify the profit and revenue maximising point?</p><p>(c) Illustrate the above table in a graph showing the profit and revenue maximising points.</p></div><div class="pinkBg"><p>3. (a) Complete the following table:</p><table align="left" border="1" cellpadding="0" cellspacing="0" height="774" width="797"><tbody><tr><td style="width:16.84%;"><p align="center"><strong>Output level</strong></p></td><td style="width:23.74%;"><p align="center"><strong>Sales revenue ($) </strong></p></td><td style="width:21.88%;"><p align="center"><strong>Total cost $</strong></p></td><td style="width:11.78%;"><p align="center"><strong>MR </strong></p></td><td style="width:11.8%;"><p align="center"><strong>MC </strong></p></td><td style="width:13.98%;"><p align="center"><strong>Profit $ </strong></p></td></tr><tr><td style="width:16.84%;"><p align="center">1,500</p></td><td style="width:23.74%;"><p align="center">15,000</p></td><td style="width:21.88%;"><p align="center">9,250</p></td><td style="width:11.78%;"></td><td style="width:11.8%;"></td><td style="width:13.98%;"><section class="tib-hiddenbox"><p style="text-align: center;">5,750 (revenue-cost)</p></section></td></tr><tr><td style="width:16.84%;"></td><td style="width:23.74%;"></td><td style="width:21.88%;"></td><td style="width:11.78%;"><section class="tib-hiddenbox"><p style="text-align: center;">16 (8,000/500)</p></section></td><td style="width:11.8%;"><section class="tib-hiddenbox"><p style="text-align: center;">4 (2,000/500)</p></section></td><td style="width:13.98%;"></td></tr><tr><td style="width:16.84%;"><p align="center">2,000</p></td><td style="width:23.74%;"><p align="center">23,000</p></td><td style="width:21.88%;"><p align="center">11,250</p></td><td style="width:11.78%;"></td><td style="width:11.8%;"></td><td style="width:13.98%;"><section class="tib-hiddenbox"><p style="text-align: center;">11,750</p></section><p style="text-align: center;"></p></td></tr><tr><td style="width:16.84%;"></td><td style="width:23.74%;"></td><td style="width:21.88%;"></td><td style="width:11.78%;"><section class="tib-hiddenbox"><p style="text-align: center;">14</p></section><p style="text-align: center;"></p></td><td style="width:11.8%;"><section class="tib-hiddenbox"><p style="text-align: center;">6</p></section><p style="text-align: center;"></p></td><td style="width:13.98%;"></td></tr><tr><td style="width:16.84%;"><p align="center">2,500</p></td><td style="width:23.74%;"><p align="center">30,000</p></td><td style="width:21.88%;"><p align="center">14,250</p></td><td style="width:11.78%;"></td><td style="width:11.8%;"></td><td style="width:13.98%;"><section class="tib-hiddenbox"><p style="text-align: center;">15,750</p></section><p style="text-align: center;"></p></td></tr><tr><td style="width:16.84%;"></td><td style="width:23.74%;"></td><td style="width:21.88%;"></td><td style="width:11.78%;"><section class="tib-hiddenbox"><p style="text-align: center;">12</p></section><p style="text-align: center;"></p></td><td style="width:11.8%;"><section class="tib-hiddenbox"><p style="text-align: center;">8</p></section><p style="text-align: center;"></p></td><td style="width:13.98%;"></td></tr><tr><td style="width:16.84%;"><p align="center">3,000</p></td><td style="width:23.74%;"><p align="center">36,000</p></td><td style="width:21.88%;"><p align="center">18,250</p></td><td style="width:11.78%;"></td><td style="width:11.8%;"></td><td style="width:13.98%;"><section class="tib-hiddenbox"><p style="text-align: center;">17,750</p></section><p style="text-align: center;"></p></td></tr><tr><td style="width:16.84%;"></td><td style="width:23.74%;"></td><td style="width:21.88%;"></td><td style="width:11.78%;"><section class="tib-hiddenbox"><p style="text-align: center;"><strong><span style="color:#FF0000;">10</span></strong></p></section><p style="text-align: center;"></p></td><td style="width:11.8%;"><section class="tib-hiddenbox"><p style="text-align: center;"><span style="color:#FF0000;"><strong>10</strong></span></p></section><p style="text-align: center;"></p></td><td style="width:13.98%;"></td></tr><tr><td style="width:16.84%;"><p align="center">3,500</p></td><td style="width:23.74%;"><p align="center">41,000</p></td><td style="width:21.88%;"><p align="center">23,250</p></td><td style="width:11.78%;"></td><td style="width:11.8%;"></td><td style="width:13.98%;"><section class="tib-hiddenbox"><p style="text-align: center;">17,750</p></section><p style="text-align: center;"></p></td></tr><tr><td style="width:16.84%;"></td><td style="width:23.74%;"></td><td style="width:21.88%;"></td><td style="width:11.78%;"><section class="tib-hiddenbox"><p style="text-align: center;">8</p></section><p style="text-align: center;"></p></td><td style="width:11.8%;"><section class="tib-hiddenbox"><p style="text-align: center;">12</p></section><p style="text-align: center;"></p></td><td style="width:13.98%;"></td></tr><tr><td style="width:16.84%;"><p align="center">4,000</p></td><td style="width:23.74%;"><p align="center">45,000</p></td><td style="width:21.88%;"><p align="center">29,250</p></td><td style="width:11.78%;"></td><td style="width:11.8%;"></td><td style="width:13.98%;"><section class="tib-hiddenbox"><p style="text-align: center;">15,750</p></section><p style="text-align: center;"></p></td></tr><tr><td style="width:16.84%;"></td><td style="width:23.74%;"></td><td style="width:21.88%;"></td><td style="width:11.78%;"><section class="tib-hiddenbox"><p style="text-align: center;">6</p></section><p style="text-align: center;"></p></td><td style="width:11.8%;"><section class="tib-hiddenbox"><p style="text-align: center;">14</p></section><p style="text-align: center;"></p></td><td style="width:13.98%;"></td></tr><tr><td style="width:16.84%;"><p align="center">4,500</p></td><td style="width:23.74%;"><p align="center">48,000</p></td><td style="width:21.88%;"><p align="center">36,250</p></td><td style="width:11.78%;"></td><td style="width:11.8%;"></td><td style="width:13.98%;"><section class="tib-hiddenbox"><p style="text-align: center;">11,750</p></section><p style="text-align: center;"></p></td></tr><tr><td style="width:16.84%;"></td><td style="width:23.74%;"></td><td style="width:21.88%;"></td><td style="width:11.78%;"><section class="tib-hiddenbox"><p style="text-align: center;"><span style="color:#FF0000;"><strong>0</strong></span></p></section><p style="text-align: center;"></p></td><td style="width:11.8%;"><section class="tib-hiddenbox"><p style="text-align: center;">16</p></section><p style="text-align: center;"></p></td><td style="width:13.98%;"></td></tr><tr><td style="width:16.84%;"><p align="center">5,000</p></td><td style="width:23.74%;"><p align="center">48,000</p></td><td style="width:21.88%;"><p align="center">44,250</p></td><td style="width:11.78%;"></td><td style="width:11.8%;"></td><td style="width:13.98%;"><section class="tib-hiddenbox"><p style="text-align: center;">3,750</p></section><p style="text-align: center;"></p></td></tr><tr><td style="width:16.84%;"></td><td style="width:23.74%;"></td><td style="width:21.88%;"></td><td style="width:11.78%;"><section class="tib-hiddenbox"><p style="text-align: center;">(1)</p></section><p style="text-align: center;"></p></td><td style="width:11.8%;"><section class="tib-hiddenbox"><p style="text-align: center;">18</p></section></td><td style="width:13.98%;"></td></tr><tr><td style="width:16.84%;"><p align="center">5,500</p></td><td style="width:23.74%;"><p align="center">47,500</p></td><td style="width:21.88%;"><p align="center">53,250</p></td><td style="width:11.78%;"></td><td style="width:11.8%;"></td><td style="width:13.98%;"><section class="tib-hiddenbox"><p style="text-align: center;">(5,750)</p></section><p style="text-align: center;"></p></td></tr></tbody></table></div><div class="pinkBg"><h4><strong>Activity 4: Guidance on drawing the graphs</strong></h4><p><img alt="" src="../../../ib/economics/images/costs-and-revenue/drawing-a-diagram.jpg" style="width: 300px; height: 300px; float: right;">When completing paper one style examination questions you will need to illustrate your responses on a graph showing a firm making either a loss, normal profit or abnormal profits. Practise drawing all three now. The easiest way to do this is to start by drawing three identical diagrams showing the MR, AR and MC curves. Your axis should be labelled as in diagram 1.</p><p>Next draw the profit maximising point where MC = MR and show the selling price. This can be found by drawing a dotted line up from the profit maximising point to point A, which is derived from where your line intersects with the AR curve. Then by drawing a line down from the profit maximising point to the horizontal axis you will derive the output level, represented by point Q on the diagram. </p><p>Next you are ready to complete your graphs and to do this simply draw the AC curve. It is this curve which determines whether your firm is making a loss or profit. To draw a firm making normal profit simply position the AC curve so that it touches the AR curve at output Q. To draw a loss making firm position the AC curve above so that at output Q the level of average cost is greater than average revenue. Lastly to illustrate a firm making abnormal profit simply draw the AC curve below the AR curve at output level Q.</p><p>Check your completed diagrams with your teacher.</p></div><section class="tib-hiddenbox"><div class="row-fluid"><div class="span6 col-left"><div><div class="span6"><p>Abnormal profit firm</p><p><img alt="" src="../../../ib/economics/images/costs-and-revenue/lr-monopolistic-competition.jpg" style="width: 275px; height: 275px;"></p></div></div></div><div class="span6"><div><p>Loss making firm</p></div></div><p><img alt="" src="../../../ib/economics/images/costs-and-revenue/loss-monopoly.jpg" style="width: 275px; height: 275px;"></p></div><div class="row-fluid"><div class="span6 col-left"><div><p>Normal profit making firm</p><p><img alt="" src="../../../ib/economics/images/costs-and-revenue/normal-profit-monopoly.jpg" style="width: 275px; height: 275px;"></p></div></div><div class="span6"><div><p>Col 2</p></div></div></div><div class="span6"></div></section><div class="pinkBg"><h4><strong>Activity 5: Link to the assessment</strong></h4><p>An example of a part (a) paper one question:</p><p>Explain why a firm may choose to stay in business despite making only normal profits? <em>[10 marks]</em></p><section class="tib-hiddenbox"><div><p><em><span style="color:#FF0000;">Key terms to define: normal profits, economic profit, accounting profit</span></em></p><p><span style="color:#FF0000;">The response should note that in economic profit implicit costs or opportunity costs are included in the calculation of total cost. This means that the total economic costs of a business include the opportunity cost of the factor resources used in running it. This would include a salary for the entrepreneur equal to the wage that they could earn elsewhere in alternative employment. </span></p><p><span style="color:#FF0000;">This means that while no entrepreneur should be happy to simply 'break even' the amount earned is at least as high as any alternative use of either their labour or other resources used.</span></p></div></section></div><div class="pinkBg"><h4><strong>Activity 6: Application of theory</strong></h4><p>Why do so many start up businesses succeed? Why do some not?</p><p style="text-align: center;"><iframe allowfullscreen="" frameborder="0" height="360" src="//www.youtube.com/embed/bNpx7gpSqbY" width="640"></iframe></p></div><script>document.querySelectorAll('.tib-teacher-only').forEach(e => e.remove());</script>
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