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Edexcel Economics 6. Business Behaviour

In this quiz the answers change every time you play! Guess the terms that fit these definitions
Answer must correspond to highlighted box!
Quiz by robalot39
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Last updated: January 3, 2020
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First submittedSeptember 11, 2019
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Average score40.0%
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Description
Term
Total variable costs (TVC) ÷ output (Q)
Average Variable Costs (AVC)
Where a firm merges with or acquires a firm in an earlier stage of the production chain, such as a manufacturer and an extractor
Backward Vertical Integration
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)
Total Costs (TC)
Diseconomies of scale that arise from the expansion of a firm
Internal Diseconomies of Scale
That which happens to average fixed costs (AFC) as output increases due to the same cost being dividing between a higher number of units
Falls
The factor of production that takes risks, organises production, and earns profit
Enterprise
A u-shaped curve that plots average costs against output
Average Cost Curve
Profits that exceed normal profits
Supernormal Profits
That which price elasticity of demand is when marginal revenue is negative
Relatively Inelastic
Internal economies of scale resulting from large firms being able to diversify and thus spread and mitigate risks across industries
Risk-Based Economies
Description
Term
That which firms may avoid due to the owner not desiring increased pressure or working hours, or to lose control to shareholders were the firm to become publicly limited
Growth
Economies of scale that arise from the expansion of a firm
Internal Economies of Scale
The cost of producing an additional unit of output, calculated as change in total costs ÷ change in output (ΔTC ÷ ΔQ) or (total cost from producing x+1 units) - (total from selling x units)
Marginal Costs (MC)
When a firm divided into two or more parts or sells off part of its business, being either full or partial
Demerger
A hump-shaped curve showing changes in total revenue against changes in output, at the peak of which demand is unit elastic and marginal revenue equals zero
Total Revenue Curve
Where a firm merges with or acquires a firm in a later stage of the production chain, such as a manufacturer and a retailer
Forward Vertical Integration
Costs that vary with the level of output, calculated as total cost (TC) - fixed cost (FC)
Variable Costs (VC)
Total cost (TC) ÷ output (Q)
Average Cost (AC)
That the position of which, short-run profit maximisation often depends on
Trade Cycle
That which firms may seek to achieve by reducing prices to stimulate demand or increasing prices while maintaining sales
Revenue Maximisation
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