Edexcel Economics 6. Business Behaviour

Description

Term

The factor of production that takes risks, organises production, and earns profit

Costs that vary with the level of output, calculated as total cost (TC) - fixed cost (FC)

A monopoly that arises in an industry in which such substantial economies of scale are present that only one firm is viable

Internal economies of scale resulting from large firms' distribution costs being lower per-unit

A horizontal curve that plots those non-variable total costs against output

That which will increase when exceeded by marginal cost and vice versa

Diseconomies of scale that arise from the expansion of an industry in which firms are operating

Where a firm produces output at the level of highest total revenue and thus above maximum profit, marginal revenue equaling zero

Internal economies of scale resulting from the trade discounts of buying in bulk

A market situation in which some participants are able to exert some control over prices, with some monopolies and monopsonies being present

Description

Term

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

That which firms might do so as; to concentrate on a smaller range of products, thereby increasing quality, to eliminate diseconomies of scale, to be more manageable, or because enforced by competition authorities

Where a firm merges with or acquires a firm in a later stage of the production chain, such as a manufacturer and a retailer

Internal economies of scale resulting from large firms being able to diversify and thus spread and mitigate risks across industries

A company that has production units in more than one country

Total fixed costs (TFC) ÷ output (Q)

Internal economies of scale resulting from cheaper rates from advertising agencies, such as how a full page advert does not cost double a half page advert

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

The sum of all costs incurred in the production or purchasing of goods and services, calculated as cost per unit × output (Q) or total fixed costs (TFC) + total variable costs (TVC)

Groups of people that have an interest in an organisation such as; owners, consumers, employers, governments, communities, &c.