Statistics for Edexcel Economics 6. Business Behaviour

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  • This quiz has been taken 20 times
  • The average score is 15 of 20

Answer Stats

DescriptionTerm% Correct
When a firm divided into two or more parts or sells off part of its business, being either full or partialDemerger
100%
That which a firm makes when average revenue is exceeded by average costLoss
100%
A market situation in which all participants are numerous and well informed enough such that no party is able to exert control on prices, and monopolies are not presentPerfect Competition
100%
Where firms aim to produce satisfactory results such as satisfactory profits rather than maximum profitsSatisficing
100%
The percentage of turnover in the UK in 2018 that was accounted for by large businesses (250+ employees)48%
0%
The percentage of businesses in the UK that employed under ten people in 201896%
0%
Where a firm purchases another firmAcquisition or Take Over
0%
That which will increase when exceeded by marginal cost and vice versaAverage Cost (AC)
0%
Total cost (TC) ÷ output (Q)Average Cost (AC)
0%
A u-shaped curve that plots average costs against outputAverage Cost Curve
0%
Total fixed costs (TFC) ÷ output (Q)Average Fixed Costs (AFC)
0%
Price paid per unit or total revenue (TR) ÷ output (Q)Average Revenue
0%
Total variable costs (TVC) ÷ output (Q)Average Variable Costs (AVC)
0%
Where a firm merges with or acquires a firm in an earlier stage of the production chain, such as a manufacturer and an extractorBackward Vertical Integration
0%
That which firms might do so as to ensure control over the supply of and price of materialsBackward Vertical Integration
0%
Those which are affected by market conditions in that during a slowdown a firm may seek merely to survive, while during a boom it may seek to increase its profitsBusiness Objectives
0%
The aims which a firm sets out to achieve, i.e. the reasons why the firm is in businessBusiness Objectives
0%
Internal economies of scale resulting from the ability to sell by-products of production, such as chemicals from oil refineryBy-Product Economies
0%
The four factors of production in alphabetical orderCapital, Enterprise, Labour, and Land
0%
Private sector, not-for-profit organisationsCharities
0%
Firms with separate legal status which are owned by their shareholdersCompanies
0%
An independent, non-ministerial department which works 'to promote competition for the benefit of consumers'Competition and Markets Authority
0%
A merger between firms or acquisition of one firm by another that is operating in a different marketConglomerate Integration
0%
That which firms might do so as to allow the covering of temporary losses for one product by subsidising it with profits from another, such as is done by Amazon.comConglomerate Integration
0%
When output and costs rise at the same rateConstant Returns to Scale
0%
Actions taken by firms in order to demonstrate their commitment to acting in the public interest, perhaps in order to safeguard their market position, such as by paying fair wages or producing sustainablyCorporate Social Responsibility
0%
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 authoritiesDemerge
0%
That, some of the principal disadvantages of which are that; firms cannot compete so well with larger ones, cannot take advantage of certain economies of scale, and that it can be confusing for customersDemerger
0%
That which can cause confusion for workers, though may also present possible employment opportunities due to duplicationDemerger
0%
The relationship between price and total revenue when demand is relatively price inelasticDirect
0%
When an increase in a firm's scale of production leads to production at higher long-run average costs, being either internal or externalDiseconomies of Scale
0%
The rate at which marginal revenue falls relative to average revenue under conditions of imperfect competitionDouble
0%
When an increase in a firm's scale of production leads to production at lower long-run average costs, being either internal or externalEconomies of scale
0%
Where firms reduce average costs by producing a wider range of products which can be managed by existing administrative structuresEconomies of Scope
0%
The factor of production that takes risks, organises production, and earns profitEnterprise
0%
That which a firm achieves when it is producing that output which allows it to maximise profits, i.e. MR=MCEquilibrium
0%
That which an industry achieves when all firms are earning normal profit, with none making losses as they would exit the market, and none earning supernormal profit as this would incentivise new firms to enter the marketEquilibrium
0%
That which often arises from increased resource costs due to competition, as well as pollution, congestion, and overuse and depreciation of infrastructureExternal Diseconomies of Scale
0%
Diseconomies of scale that arise from the expansion of an industry in which firms are operatingExternal Diseconomies of Scale
0%
Economies of scale that arise from the expansion of an industry in which firms are operatingExternal Economies of Scale
0%
That which often arises where firms within a particular industry are concentrated within one geographic area such as horse racing in Newmarket, SuffolkExternal Economies of Scale
0%
That which happens to average fixed costs (AFC) as output increases due to the same cost being dividing between a higher number of unitsFalls
0%
Internal economies of scale resulting from large firms being able to obtain finance more cheaply and easily due to their creditworthinessFinancial Economies
0%
Those, the growth of which is measured in terms of; output, sales revenue, market share, asset value, and/or workforce sizeFirms
0%
That which all costs are when output is zeroFixed Costs
0%
Costs that do not vary with the level of output, calculated as total cost (TC) - variable cost (VC)Fixed Costs (FC)
0%
Where a firm merges with or acquires a firm in a later stage of the production chain, such as a manufacturer and a retailerForward Vertical Integration
0%
That which firms might do so as to ensure their products are being sold, and sold well, while also stifling its rival companies' ability to competeForward Vertical Integration
0%
Where the new firms resulting from a demerger have no direct connection to one anotherFull Demerger
0%
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 motivesGrow
0%
The which firms might not do so as to; avoid regulatory burdens, minimise overhead costs, maintain flexibility, adaptability, and the close relationship with consumers, maintain quality control, or due to the owner's lifestyle choiceGrow
0%
That, the principal barriers to which are a lack of funding, lack of demand, and fear of diseconomies of scaleGrowth
0%
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 limitedGrowth
0%
That which firms might do so as to benefit from economies of scale or to eliminate competitionHorizontal Integration
0%
A merger between firms or acquisition of one firm by another within the same industry and stage of productionHorizontal Integration
0%
A market situation in which some participants are able to exert some control over prices, with some monopolies and monopsonies being presentImperfect Competition
0%
The conditions under which average revenue and marginal revenue fall with a rise in outputImperfect Competition
0%
That which consists of all firms which produce the same type of good or serviceIndustry
0%
That, the principal disadvantages of which are that it is very costly, can lead to diseconomies of scale, reduces competition harming consumer choice, can lead to culture clashes, or can fail due to an inability to marry together different systemsIntegration
0%
A process by which firms expand by merging with or acquiring other firmsIntegration or External Growth
0%
Diseconomies of scale that arise from the expansion of a firmInternal Diseconomies of Scale
0%
That which often arises from inefficiencies and complexities in managing and administering large firms, such as due to a result of the principal-agent problemInternal Diseconomies of Scale
0%
Economies of scale that arise from the expansion of a firmInternal Economies of Scale
0%
The relationship between price and total revenue when demand is relatively price elasticInverse
0%
Internal economies of scale resulting from large firms having more scope for division of labourLabour Economies
0%
A short-run law that an increase in one of a firm's factors of production when the other factor(s) remains fixed, will eventually lead to the firm deriving diminishing marginal returns from the variable factorLaw of Diminishing Returns
0%
Where shareholders are responsible for company debt up to the nominal value of their sharesLimited Liability
0%
The period of time in which the scale of a firms operations can be changed, i.e. all factors of production are variableLong Run
0%
The cost per unit of output feasible when all factors of production are variableLong-Run Average Cost
0%
A usually u-shaped curve that plots costs where all factors of production are variable against outputLong-Run Average Cost Curve or Envelope Curve
0%
Internal economies of scale resulting from large firms being able to employ managers with more specialised functions such as accounting or developmentManagerial Economies
0%
Those that growth, irrespective of profits, might benefit by granting them higher pay, status, and powerManagers
0%
A u-shaped curve that plots the cost of an additional unit of production against outputMarginal Cost Curve
0%
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)
0%
The additional revenue gained by a firm from selling an additional unit of outputMarginal Revenue (MR)
0%
That the size of which may limit the extent to which a business can grow as niche or local ones have limited demand, while the state of the economy can reduce demand and thereby investmentMarket
0%
That which consists of firms in an industry and the firms and individuals who purchase the productMarket
0%
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 advertMarketing Economies
0%
The percentage of the total market which a firm supplies, measured either in terms of sales or revenueMarket Share
0%
The rule that profits are maximised when marginal cost is equal to marginal revenueMC=MR Rule
0%
Where firms agree to unite on a more or less equal footing to form a new company, being either vertical, horizontal, or conglomerateMerger
0%
The level of output at which the long-run average cost curve reaches its lowest point, with no further advantage to economies of scale being possibleMinimum Efficient Scale
0%
The power of a firm over a market by lieu of it purchasing a substantial share of the product, such as British Sugar has over sugar beetMonopsony Power
0%
A company that has production units in more than one countryMultinational Company
0%
A monopoly that arises in an industry in which such substantial economies of scale are present that only one firm is viableNatural Monopoly
0%
Profit that covers the opportunity cost of being in business, being just sufficient to keep the firm in the marketNormal Profit
0%
That which a firm makes when average revenue equals average costNormal Profit
0%
The minimum point on the average cost curve, where it is intersected by the marginal cost curveOptimum Output
0%
A process by which firms expand from within as done by Marks and Spencer, being controlled and avoiding excess capacity, but also slowOrganic or Internal Growth
0%
That, the use of which, has blurred the line between the private and public sectors in the UKOutsourcing
0%
Fixed expenses not directly related to labour or production, required to operate a business, such as electricity bills, rent, &c.Overhead Costs
0%
Where the parent company retains some of the shares in a demerged businessPartial Demerger
0%
The conditions under which average revenue and marginal revenue are equal and constantPerfect Competition
0%
That which firms may be seeking to influence by growing and increasing their market sharePrice
0%
Those firms concerned with the extraction of raw materialsPrimary Production
0%
The problem arising from conflicting objectives between the principals (e.g. shareholders) and the agents (e.g. managers) who make decisions on their behalfPrincipal-Agent Problem
0%
That, the increase of which may lead to managers receiving higher salaries, bonuses, or the change of promotionProfit
0%
That which many businesses operate for, often to provide income for the owner or dividends for the shareholders, as opposed to those that focus on providing a service such as a private schoolProfit
0%
Total revenue (TR) - Total Cost (TC)Profit (π)
0%
That which Amazon.com has not focussed on, so as to be able to lower prices and thereby increase its market share at the expense of its competitorsProfit Maximisation
0%
Where a firm produces output at the level of highest profit, where total revenue most exceeds total costProfit Maximisation
0%
A company with statutory minimum capital, the shares of which are publicly tradable subject to limited liabilityPublic Limited Company
0%
An organisation or corporation owned and funded by the government such as the Bank of England or a public sector hospitalPublic Sector Organisation or Public Corporation
0%
Internal economies of scale resulting from the trade discounts of buying in bulkPurchasing Economies
0%
One of the first steps taken after a merger or acquisition where unnecessary 'duplicates' of staff, shops, &c. are made redundant or closedRationalisation
0%
That which might limit the potential for a firm to grow by rejecting mergers or acquisitions not in the public interest, or forcing the firm to divest part of its businessRegulation
0%
That which price elasticity of demand is when marginal revenue is positiveRelatively Elastic
0%
That which price elasticity of demand is when marginal revenue is negativeRelatively Inelastic
0%
Internal economies of scale resulting from large firms being able to use more specialised staff and invest in making production more efficientResearch and Development Economies
0%
That which firms may seek to achieve by reducing prices to stimulate demand or increasing prices while maintaining salesRevenue Maximisation
0%
Where a firm produces output at the level of highest total revenue and thus above maximum profit, marginal revenue equaling zeroRevenue Maximisation
0%
Internal economies of scale resulting from large firms being able to diversify and thus spread and mitigate risks across industriesRisk-Based Economies
0%
The total volume of goods and services soldSales
0%
That which firms may seek to achieve by; reducing prices to stimulate demand, increasing their product range, or spending on advertisingSales Maximisation
0%
Where a firm produces output at the level of highest total sales and thus above maximum revenue, with average cost and total cost equalling average revenue and total revenue respectively, all profit being normalSales Maximisation
0%
The which often arises where conflicts of interest arise between stakeholdersSatisficing
0%
That which many small businesses seek as opposed to profit maximisationSatisficing Profits
0%
Those firms concerned with manufactureSecondary Production
0%
Internal economies of scale resulting from large firms' distribution costs being lower per-unitSelling Economies
0%
Those that higher profits might benefit by increasing dividends and capital gainsShareholders
0%
The period of time in which the scale of a firms operations - though not variable factors like the number of people employed (assuming spare capacity) - cannot be changedShort Run
0%
Groups of people that have an interest in an organisation such as; owners, consumers, employers, governments, communities, &c.Stakeholders
0%
They that affect a business's objectives due to their competing interests requiring the firm to balance them in line with its own circumstancesStakeholders
0%
Short-run fixed costs which have already been paid for and cannot be recovered if the firms closes downSunk Costs
0%
That which a firm makes when average revenue exceeds average costSupernormal Profit
0%
That which firms can earn in the long-run by erecting barriers to other firms entering the market possibly due to having monopoly powerSupernormal Profits
0%
Profits that exceed normal profitsSupernormal Profits
0%
That which - if not sub-contractors - many small firms often act as to larger firmsSuppliers
0%
Internal economies of scale resulting from large or specialised equipment often being cheaper per-unit to operate than small equipment, as with combine harvestersTechnical Economies
0%
Those firms concerned with providing servicesTertiary Production
0%
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 expansionTime
0%
A curve with an upward slope that plots total costs against outputTotal Cost Curve
0%
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)
0%
A horizontal curve that plots those non-variable total costs against outputTotal Fixed Cost Curve
0%
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 zeroTotal Revenue Curve
0%
Price per unit (P) × output (Q)Total Revenue (TR)
0%
That the position of which, short-run profit maximisation often depends onTrade Cycle
0%
That which price elasticity of demand is when marginal revenue equals zeroUnit Elastic
0%
Costs that vary with the level of output, calculated as total cost (TC) - fixed cost (FC)Variable Costs (VC)
0%
A merger between firms or acquisition of one firm by another within the same industry but different stages of production, being either forward or backwardVertical Integration
0%
Where a firm is not operating at minimum cost, perhaps arising from the effects of the principal-agent problemX-Inefficiency
0%

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