Edexcel Economics 6. Business Behaviour

Description

Term

The percentage of businesses in the UK that employed under ten people in 2018

When an increase in a firm's scale of production leads to production at lower long-run average costs, being either internal or external

Short-run fixed costs which have already been paid for and cannot be recovered if the firms closes down

That which affects a business's objectives in that if it has just been established it may seek just to break even, whereas if it is more well established it may look to achieve profit and expansion

That the position of which, short-run profit maximisation often depends on

Profit that covers the opportunity cost of being in business, being just sufficient to keep the firm in the market

That which firms might do to; increase profits, decrease costs through economies of scale, increase market share and/or power, diversify thereby mitigating risks, or for managerial motives

Internal economies of scale resulting from large or specialised equipment often being cheaper per-unit to operate than small equipment, as with combine harvesters

When a firm divided into two or more parts or sells off part of its business, being either full or partial

Costs that do not vary with the level of output, calculated as total cost (TC) - variable cost (VC)

Description

Term

Those that higher profits might benefit by increasing dividends and capital gains

Where shareholders are responsible for company debt up to the nominal value of their shares

An independent, non-ministerial department which works 'to promote competition for the benefit of consumers'

That which consists of firms in an industry and the firms and individuals who purchase the product

Where the new firms resulting from a demerger have no direct connection to one another

That which price elasticity of demand is when marginal revenue is positive

Fixed expenses not directly related to labour or production, required to operate a business, such as electricity bills, rent, &c.

Economies of scale that arise from the expansion of a firm

Internal economies of scale resulting from large firms being able to use more specialised staff and invest in making production more efficient

That which - if not sub-contractors - many small firms often act as to larger firms