Theme 3 Topics

• 3.1 Business Growth

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  Forms of growth, mergers and takeovers, constraints on growth

  • 3.1.1 Sizes and Types of Firms
  • 3.1.2 Business Growth
  • 3.1.3 Demergers

• 3.2 Business Objectives

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  Profit maximisation, revenue maximisation, other objectives

  • 3.2.1 Business Objectives

• 3.3 Revenue, Costs and Profits

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  Revenue, costs, economies of scale, normal/supernormal profits

  • 3.3.1 Revenue
  • 3.3.2 Costs
  • 3.3.3 Economies and Diseconomies of Scale
  • 3.3.4 Normal Profits, Supernormal Profits and Losses

• 3.4 Market Structures

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  Perfect competition, monopolistic competition, oligopoly, monopoly

  • 3.4.1 Efficiency
  • 3.4.2 Perfect Competition
  • 3.4.3 Monopolistic Competition
  • 3.4.4 Oligopoly
  • 3.4.5 Monopoly
  • 3.4.6 Monopsony
  • 3.4.7 Contestability

• 3.5 Labour Market

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  Demand and supply of labour, wage determination, government intervention

  • 3.5.1 Demand for Labour
  • 3.5.2 Supply of Labour
  • 3.5.3 Wage Determination in Competitive and Non-Competitive Markets

• 3.6 Government Intervention

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  Regulation, competition policy, public ownership, privatisation

  • 3.6.1 Government Intervention
  • 3.6.2 The Impact of Government Intervention