Mind Maps have been produced to introduce topics and give students an overview of key topics being studied. This mind map introduces the Theory of the Firm.

The Theory of the Firm - Mind Map

Mind Maps have been produced to introduce topics and give students an overview of key topics being studied. The maps can be viewed as a whole page or, for those who prefer a more linear approach, as a text version.

View larger version of the mind map.

The Theory of the Firm

1. Costs
   
   • Total Cost (FC + VC)
   • Variable (direct) Costs
   • Fixed (indirect or overhead) Costs
   • Average Costs (TC/Q)
   • Marginal Costs (TCn - TCn-1)
   • Opportunity Cost
   • Short run
   • Long Run
2. Production Function
   
   • Output (Q)
   • Inputs
     
     • Capital (K)
     • Land (L)
     • Labour (La)
   • Q = f(K, L, La)
   • Law of Diminishing Marginal Returns
   • Total Product
   • Average Product (TP/Q)
   • Marginal Product
   • Productivity
3. Profit
   
   • Normal Profit
   • Abnormal or Supernormal Profit
   • Sub-normal Profit
   • Short Run
     
     • At least one factor fixed
   • Long Run
     
     • All factors variable
4. Revenue
   
   • Total Revenue (P x Q)
   • Average Revenue (TR/Q)
   • Marginal Revenue (TRn - TRn-1)