Marginal revenue is the additional revenue from selling one more unit of product. It can be positive or negative and is crucial for firm analysis. Profit maximization occurs when marginal revenue equals marginal cost
Firms choose to produce when revenues exceed variable costs but not total costs. Short-run supply curve is marginal cost above average variable cost. Industry supply curve is horizontal sum of firm's output at each price
Many producers compete with differentiated products. Companies set prices independently without affecting others. Few barriers to entry and exit exist. Products have real or perceived non-price differences
Microeconomics studies individual decision-making units like households and firms. Scarcity forces choices about resource allocation and trade-offs. Opportunity cost represents value of next best alternative forgone
Sanctions are restrictive measures imposed by HM Government for foreign policy objectives. All firms are subject to sanctions regardless of service type. Sanctions breach is a criminal offence punishable by fines and imprisonment
Many companies offer similar but not identical products. Low barriers to entry allow multiple competitors to compete. Companies differentiate through pricing and marketing strategies. Demand is highly elastic and responsive to price changes