Unit 1 - Introduction to markets and market failure
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PEARSON (PEARSON)
Economics Theme 3: Business Behaviour and the Labour Market Detailed Spec checklist. Content outlined to ensure you cover all content for your exams. The number 1 tool to ace your exams!
Unit 1 - Introduction to markets and market failure
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3.1.2 Business growth
a) How businesses grow:
- organic growth
- forward and backward vertical integration
- horizontal integration
- conglomerate integration
b) Advantages and disadvantages of:
- organic growth
- vertical integration
- horizontal integration
- conglomerate integration
c) Constraints on business growth:
- size of the market
- access to finance
- owner objectives
- regulation
3.2.1 Business objectives
a) Different business objectives and reasons for them:
- profit maximisation
- revenue maximisation
- sales maximisation
- satisficing
b) Diagrams and formulae to illustrate the different business objectives:
- profit maximisation
- revenue maximisation
- sales maximisation
3.3.1 Revenue
a) Formulae to calculate and understand the relationship between:
- total revenue
- average revenue
- marginal revenue
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