3.1- Business growth and Objectives Part A

1. ... are costs that do not vary with the level of output (5, 5)
5. A ... is an organisation that brings together factors of production in order to produce output. (4)
6. ... are short-run costs that cannot be recovered if the firm closes down (4, 5)
7. A ... merger is a merger between two firms at the same stage of production in the same industry (10)
9. ... integration is a process under which a firm mergers with a firm that is involved in a later part of the production chain (8)

2. The period over which a firm is free to vary the input of one of its factors of production (labour), but faces a fixed input of the other (capital) is known as the ... (5, 3)
3. A ... merger is a merger between two firms in the same industry, but at different stages of the production process (8)
4. A ... merger is a merger between two firms operating in different markets (12)
8. ... is the cost of producing an additional unit of output (8, 4)
10. ... is total costs divided by the quantity produced (7, 4)

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