Other slides in this set

Slide 2

Preview of page 2

Here's a taster:

Owners of the company.
Aim to have higher Want lower
The more interested you
wages and better prices and higher
are the more shares you
conditions, pushing up quality products
would hold
costs. Average costs will
rise
Stakeholders ­ Internal Consumers ­ External
Profit is main
motive as
Employees - Internal Pushes up costs
determines and reduces
dividend Want high levels of revenue,
revenue and low costs therefore
lowers profit
Environmental
a) Corporation tax -
implications
Stakeholders groups will
boycott
products
Government
Pressure Groups ­
b) Ensure
through External
regulation and
Companies Competition Companies have to be seen
fined if found Commission to be environmentally
to be colluding that market friendly
operates fairly
Suppliers ­ External
Poor quality
Prevent consumer products
being exploited Want to be paid on time
otherwise disrupts cash
flow…read more

Slide 3

Preview of page 3

Here's a taster:

Occurs when the firm
producers at lowest point Price paid by consumer is
of the average cost curve equal to cost of producing
last unit of output
Productive efficiency
Allocative efficiency
Price/AC = MC
Occurs when firms
produces at a point where
price=MC.
Economy
efficiency
When it reinvests its profit for
Only possible if firm research and development,
Dynamic efficiency innovation and improvements
makes supernormal
profit in technology…read more

Slide 4

Preview of page 4

Here's a taster:

Size of firms
No of firms in a market
Entry and exit
conditions
How the actions of one
Characteristics of
firm affect others
a market
Similarities of goods
and services in the
The degree of market
knowledge/info firms
have…read more

Slide 5

Preview of page 5

Here's a taster:

Market Structures
Perfect Monopolistic Oligopoly ­
Monopoly ­
competition competition 4/5 firms
1 sole
­ 100% ­ imperfect dominate the
producer
competitive competition market
-Economic
100% of
market
-EU law 25%
of market
Market becoming less
competitive
Market becoming less
contestable
Increasing barriers of entry…read more

Slide 6

Preview of page 6

Here's a taster:

Four-firm three-firm
concentration concentration
ratio of 81% of ratio of 71% of
market share market share
Concentration
Concentration ratio refers
Ratios This would also
to the suggest less
proportion/percentage of competition and low
the market taken up by x contestability
number of firms
When there are very
few firms in the market
it is said to be highly
concentrated or there is
a high concentration
ratio…read more

Comments

Whitney Koranteng

Where is part 2??

Similar Economics resources:

See all Economics resources »See all resources »