Edexcel A-level Economics Theme 3 Questions With Complete Solutions Backwards vertical integration - Correct Answers ✅a joining together into one firm of two or more firms where the purchaser merges with/takes over one or more of its suppliers Conglomerate integration - Correct Answers ✅a joining together into one firm of two or more firms producing unrelated products Demerger - Correct Answers ✅when a firm splits into two or more independent businesses Divorce of ownership from control - Correct Answers ✅when managers and directors of a business are different from the owners of a business (the shareholders) Forward vertical integration - Correct Answers ✅a joining together into one firm of two or more firms where the supplier merges with/takes over one or more of its buyers Horizontal integration - Correct Answers ✅a joining together of two firms in the same industry at the same stage of production Niche market - Correct Answers ✅a small segment of a larger market 1 / 3
Edexcel A-level Economics Theme 3 Questions With Complete Solutions Merger/integration - Correct Answers ✅the joining together of two or more firms under common ownership Not-for-profit organisations - Correct Answers ✅organisations that do not aim to make a profit; rather, they use any profit or surplus they generate to support their aims (eg. a charity) Organic or internal growth - Correct Answers ✅a firm increasing its size through investment in capital equipment/an increased labour force Private sector organisations - Correct Answers ✅organisations owned by individuals or companies rather than the state Public sector organisations - Correct Answers ✅organisations owned and controlled by the state Synergy - Correct Answers ✅when two or more activities/firms put together can lead to greater outcomes than the sum of the individual parts Vertical integration - Correct Answers ✅a joining together into one firm of two or more firms in the same industry at different stages of production 2 / 3
Edexcel A-level Economics Theme 3 Questions With Complete Solutions Average revenue - Correct Answers ✅the average receipts per unit sold // TR÷Q Marginal revenue - Correct Answers ✅the addition to total revenue of an extra unit sold // ΔTR÷ΔQ Total revenue - Correct Answers ✅the total amount of money received from the sale of any given quantity of output // AR*Q Average product - Correct Answers ✅the quantity of output per unit of factor input // total product÷level of output Law of diminishing marginal returns - Correct Answers ✅if increasing quantities of a variable input are combined with a fixed input, eventually the marginal product and then the average product of that variable input will decline.Long run - Correct Answers ✅the period of time when all factors of production can vary, as does the number of firms in the market, but the level of technology remains constant Marginal product - Correct Answers ✅the addition to output produced by an extra unit of input // Δtotal output÷Δlevel of inputs
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