TOPIC 2: CONSUMERS AND BUSINESS
Businesses
Definition of a firm and an industry
A firm's production decisions
Business as a source of economic growth and increased productive capacity
Goals of the firm
Efficiency and the production process
Impact of investment, technological change and ethical decision-making on a firm through:
A firm's production decisions
- what to produce
- what quantities to produce
- how to produce
Business as a source of economic growth and increased productive capacity
Goals of the firm
- maximising profits
- maximising growth
- increasing market share
- meeting shareholder expectations
- satisficing
Efficiency and the production process
- productivity
- internal and external economies of scale
- diseconomies of scale
Impact of investment, technological change and ethical decision-making on a firm through:
- production methods
- prices
- employment
- output
- profits
- types of products
- globalisation
- environmental sustainability
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WATCH: Producer Theory (YouTube video by mjmfoodie)