Edexcel A-level Economics Theme 3 Exam 2024 Questions & Answers(RATED A+)

Backwards vertical integration - ANSWERSa 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 - ANSWERSa joining together into one firm of two or more firms producing unrelated products Demerger - ANSWERSwhen a firm splits into two or more independent businesses Divorce of ownership from control - ANSWERSwhen managers and directors of a business are different from the owners of a business (the shareholders) Forward vertical integration - ANSWERSa 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 - ANSWERSa joining together of two firms in the same industry at the same stage of production Niche market - ANSWERSa small segment of a larger market Merger/integration - ANSWERSthe joining together of two or more firms under common ownership Not-for-profit organisations - ANSWERSorganisations 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 - ANSWERSa firm increasing its size through investment in capital equipment/an increased labour force Private sector organisations - ANSWERSorganisations owned by individuals or companies rather than the state Public sector organisations - ANSWERSorganisations owned and controlled by the state Synergy - ANSWERSwhen two or more activities/firms put together can lead to greater outcomes than the sum of the individual parts Vertical integration - ANSWERSa joining together into one firm of two or more firms in the same industry at different stages of production Average revenue - ANSWERSthe average receipts per unit sold // TR÷Q Marginal revenue - ANSWERSthe addition to total revenue of an extra unit sold // ΔTR÷ΔQ Total revenue - ANSWERSthe total amount of money received from the sale of any given quantity of output // AR*Q Average product - ANSWERSthe quantity of output per unit of factor input // total product÷level of output Law of diminishing marginal returns - ANSWERSif 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 -