1. ECON3
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The Objectives of Firms
Answer all the questions below
1. Define the following terms
a. Profits
b. Total Revenue
c. Average Revenue
d. Marginal Revenue
2. Explain how you calculate Marginal Revenue
3. Draw an average total revenue and marginal revenue curve for both a
perfect market and an imperfect market
4. Explain the traditional theory of the firm
5. Explain the concept of normal profit
6. Explain the term profit maximisation
7. With reference to Super Normal and Sub Normal explain these in
relation to Profit