economies of scale, business growth, revenue, costs, profit, theory of the firm, market structures, anti-competitive practices, contestability, business objectives, efficiency
In the study of economics, especially at A-level, you will become well accustomed to the idea that all private-sector organisations are motivated to maximise profit, irrespective of their size, type or the degree of competition in the market they operate in. This primary motive is the central assumption of a microeconomic concept called ‘the theory of the firm’. It applies to every business, ranging from a burger van operating alongside numerous other burger vans as a sole trader selling virtually identical fare outside a football ground on matchday, to a giant multinational company with monopolistic power across a variety of global markets.
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