IGCSE+firm

This section of the syllabus will hopefully help you better understand the concept of profits. Watch the video below and then undertake the following activities. (Note that implicit costs and economic profit not relevant to IGCSE students so please ignore. (KISS).... Profit= Revenue-costs !) Ask for help if you need it. media type="file" key="Costs rev and profit activity.swf" width="524" height="524" align="center"

Student Activity: From the video above, work out the total revenue and toal costs for the following outputs: 0; 1000; 2000; 3000

Once you have shown your tables to the teacher and they are correct draw the TR,TC,FC and VC on a piece of Graph paper. It should look like this Now identify the output where Total costs are equal to total revenue. This is known as the break-even output. Mark this on your graph. How can you work out graphically the profit or loss the firm is making?

Now answer the questions and make notes from P222-225 in your textbook. You'll need some graph paper for this.

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 Uses of break even

Plenary Activity

Additional Activity/Homework (if required)

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