Statistics for Edexcel Economics 6. Business Behaviour

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This quiz has been taken 21 times
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Answer Stats

Description	Term	% Correct
Price paid per unit or total revenue (TR) ÷ output (Q)	Average Revenue	100%
That which a firm makes when average revenue is exceeded by average cost	Loss	100%
Internal economies of scale resulting from large firms being able to employ managers with more specialised functions such as accounting or development	Managerial Economies	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 present	Perfect Competition	100%
Where firms aim to produce satisfactory results such as satisfactory profits rather than maximum profits	Satisficing	100%
When a firm divided into two or more parts or sells off part of its business, being either full or partial	Demerger	50%
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 2018	96%	0%
Where a firm purchases another firm	Acquisition or Take Over	0%
That which will increase when exceeded by marginal cost and vice versa	Average Cost (AC)	0%
Total cost (TC) ÷ output (Q)	Average Cost (AC)	0%
A u-shaped curve that plots average costs against output	Average Cost Curve	0%
Total fixed costs (TFC) ÷ output (Q)	Average Fixed Costs (AFC)	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 extractor	Backward Vertical Integration	0%
That which firms might do so as to ensure control over the supply of and price of materials	Backward Vertical Integration	0%
The aims which a firm sets out to achieve, i.e. the reasons why the firm is in business	Business Objectives	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 profits	Business Objectives	0%
Internal economies of scale resulting from the ability to sell by-products of production, such as chemicals from oil refinery	By-Product Economies	0%
The four factors of production in alphabetical order	Capital, Enterprise, Labour, and Land	0%
Private sector, not-for-profit organisations	Charities	0%
Firms with separate legal status which are owned by their shareholders	Companies	0%
An independent, non-ministerial department which works 'to promote competition for the benefit of consumers'	Competition and Markets Authority	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.com	Conglomerate Integration	0%
A merger between firms or acquisition of one firm by another that is operating in a different market	Conglomerate Integration	0%
When output and costs rise at the same rate	Constant 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 sustainably	Corporate 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 authorities	Demerge	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 customers	Demerger	0%
That which can cause confusion for workers, though may also present possible employment opportunities due to duplication	Demerger	0%
The relationship between price and total revenue when demand is relatively price inelastic	Direct	0%
When an increase in a firm's scale of production leads to production at higher long-run average costs, being either internal or external	Diseconomies of Scale	0%
The rate at which marginal revenue falls relative to average revenue under conditions of imperfect competition	Double	0%
When an increase in a firm's scale of production leads to production at lower long-run average costs, being either internal or external	Economies of scale	0%
Where firms reduce average costs by producing a wider range of products which can be managed by existing administrative structures	Economies of Scope	0%
The factor of production that takes risks, organises production, and earns profit	Enterprise	0%
That which a firm achieves when it is producing that output which allows it to maximise profits, i.e. MR=MC	Equilibrium	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 market	Equilibrium	0%
Diseconomies of scale that arise from the expansion of an industry in which firms are operating	External Diseconomies of Scale	0%
That which often arises from increased resource costs due to competition, as well as pollution, congestion, and overuse and depreciation of infrastructure	External Diseconomies of Scale	0%
Economies of scale that arise from the expansion of an industry in which firms are operating	External 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, Suffolk	External 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 units	Falls	0%
Internal economies of scale resulting from large firms being able to obtain finance more cheaply and easily due to their creditworthiness	Financial Economies	0%
Those, the growth of which is measured in terms of; output, sales revenue, market share, asset value, and/or workforce size	Firms	0%
That which all costs are when output is zero	Fixed 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 retailer	Forward 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 compete	Forward Vertical Integration	0%
Where the new firms resulting from a demerger have no direct connection to one another	Full Demerger	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 choice	Grow	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 motives	Grow	0%
That, the principal barriers to which are a lack of funding, lack of demand, and fear of diseconomies of scale	Growth	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 limited	Growth	0%
A merger between firms or acquisition of one firm by another within the same industry and stage of production	Horizontal Integration	0%
That which firms might do so as to benefit from economies of scale or to eliminate competition	Horizontal Integration	0%
The conditions under which average revenue and marginal revenue fall with a rise in output	Imperfect Competition	0%
A market situation in which some participants are able to exert some control over prices, with some monopolies and monopsonies being present	Imperfect Competition	0%
That which consists of all firms which produce the same type of good or service	Industry	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 systems	Integration	0%
A process by which firms expand by merging with or acquiring other firms	Integration or External Growth	0%
Diseconomies of scale that arise from the expansion of a firm	Internal 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 problem	Internal Diseconomies of Scale	0%
Economies of scale that arise from the expansion of a firm	Internal Economies of Scale	0%
The relationship between price and total revenue when demand is relatively price elastic	Inverse	0%
Internal economies of scale resulting from large firms having more scope for division of labour	Labour 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 factor	Law of Diminishing Returns	0%
Where shareholders are responsible for company debt up to the nominal value of their shares	Limited Liability	0%
The period of time in which the scale of a firms operations can be changed, i.e. all factors of production are variable	Long Run	0%
The cost per unit of output feasible when all factors of production are variable	Long-Run Average Cost	0%
A usually u-shaped curve that plots costs where all factors of production are variable against output	Long-Run Average Cost Curve or Envelope Curve	0%
Those that growth, irrespective of profits, might benefit by granting them higher pay, status, and power	Managers	0%
A u-shaped curve that plots the cost of an additional unit of production against output	Marginal 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 output	Marginal Revenue (MR)	0%
That which consists of firms in an industry and the firms and individuals who purchase the product	Market	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 investment	Market	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 advert	Marketing Economies	0%
The percentage of the total market which a firm supplies, measured either in terms of sales or revenue	Market Share	0%
The rule that profits are maximised when marginal cost is equal to marginal revenue	MC=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 conglomerate	Merger	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 possible	Minimum 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 beet	Monopsony Power	0%
A company that has production units in more than one country	Multinational Company	0%
A monopoly that arises in an industry in which such substantial economies of scale are present that only one firm is viable	Natural Monopoly	0%
Profit that covers the opportunity cost of being in business, being just sufficient to keep the firm in the market	Normal Profit	0%
That which a firm makes when average revenue equals average cost	Normal Profit	0%
The minimum point on the average cost curve, where it is intersected by the marginal cost curve	Optimum Output	0%
A process by which firms expand from within as done by Marks and Spencer, being controlled and avoiding excess capacity, but also slow	Organic or Internal Growth	0%
That, the use of which, has blurred the line between the private and public sectors in the UK	Outsourcing	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 business	Partial Demerger	0%
The conditions under which average revenue and marginal revenue are equal and constant	Perfect Competition	0%
That which firms may be seeking to influence by growing and increasing their market share	Price	0%
Those firms concerned with the extraction of raw materials	Primary 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 behalf	Principal-Agent Problem	0%
That, the increase of which may lead to managers receiving higher salaries, bonuses, or the change of promotion	Profit	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 school	Profit	0%
Total revenue (TR) - Total Cost (TC)	Profit (π)	0%
Where a firm produces output at the level of highest profit, where total revenue most exceeds total cost	Profit Maximisation	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 competitors	Profit Maximisation	0%
A company with statutory minimum capital, the shares of which are publicly tradable subject to limited liability	Public Limited Company	0%
An organisation or corporation owned and funded by the government such as the Bank of England or a public sector hospital	Public Sector Organisation or Public Corporation	0%
Internal economies of scale resulting from the trade discounts of buying in bulk	Purchasing Economies	0%
One of the first steps taken after a merger or acquisition where unnecessary 'duplicates' of staff, shops, &c. are made redundant or closed	Rationalisation	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 business	Regulation	0%
That which price elasticity of demand is when marginal revenue is positive	Relatively Elastic	0%
That which price elasticity of demand is when marginal revenue is negative	Relatively Inelastic	0%
Internal economies of scale resulting from large firms being able to use more specialised staff and invest in making production more efficient	Research and Development Economies	0%
Where a firm produces output at the level of highest total revenue and thus above maximum profit, marginal revenue equaling zero	Revenue Maximisation	0%
That which firms may seek to achieve by reducing prices to stimulate demand or increasing prices while maintaining sales	Revenue Maximisation	0%
Internal economies of scale resulting from large firms being able to diversify and thus spread and mitigate risks across industries	Risk-Based Economies	0%
The total volume of goods and services sold	Sales	0%
That which firms may seek to achieve by; reducing prices to stimulate demand, increasing their product range, or spending on advertising	Sales 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 normal	Sales Maximisation	0%
The which often arises where conflicts of interest arise between stakeholders	Satisficing	0%
That which many small businesses seek as opposed to profit maximisation	Satisficing Profits	0%
Those firms concerned with manufacture	Secondary Production	0%
Internal economies of scale resulting from large firms' distribution costs being lower per-unit	Selling Economies	0%
Those that higher profits might benefit by increasing dividends and capital gains	Shareholders	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 changed	Short 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 circumstances	Stakeholders	0%
Short-run fixed costs which have already been paid for and cannot be recovered if the firms closes down	Sunk Costs	0%
That which a firm makes when average revenue exceeds average cost	Supernormal Profit	0%
Profits that exceed normal profits	Supernormal Profits	0%
That which firms can earn in the long-run by erecting barriers to other firms entering the market possibly due to having monopoly power	Supernormal Profits	0%
That which - if not sub-contractors - many small firms often act as to larger firms	Suppliers	0%
Internal economies of scale resulting from large or specialised equipment often being cheaper per-unit to operate than small equipment, as with combine harvesters	Technical Economies	0%
Those firms concerned with providing services	Tertiary 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 expansion	Time	0%
A curve with an upward slope that plots total costs against output	Total 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 output	Total 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 zero	Total Revenue Curve	0%
Price per unit (P) × output (Q)	Total Revenue (TR)	0%
That the position of which, short-run profit maximisation often depends on	Trade Cycle	0%
That which price elasticity of demand is when marginal revenue equals zero	Unit 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 backward	Vertical Integration	0%
Where a firm is not operating at minimum cost, perhaps arising from the effects of the principal-agent problem	X-Inefficiency	0%