Edexcel A-level Economics Theme 3
2024/2025 Exam Questions Marking
Scheme New Update | A+ Rated
Backwards vertical integration - 🧠 ANSWER ✔✔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 - 🧠 ANSWER ✔✔a joining together into one firm
of two or more firms producing unrelated products
Demerger - 🧠 ANSWER ✔✔when a firm splits into two or more
independent businesses
Divorce of ownership from control - 🧠 ANSWER ✔✔when managers and
directors of a business are different from the owners of a business (the
shareholders)
Forward vertical integration - 🧠 ANSWER ✔✔a joining together into one
firm of two or more firms where the supplier merges with/takes over one or
more of its buyers
COPYRIGHT©NINJANERD 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE. PRIVACY
1
STATEMENT. ALL RIGHTS RESERVED
,Horizontal integration - 🧠 ANSWER ✔✔a joining together of two firms in the
same industry at the same stage of production
Niche market - 🧠 ANSWER ✔✔a small segment of a larger market
Merger/integration - 🧠 ANSWER ✔✔the joining together of two or more
firms under common ownership
Not-for-profit organisations - 🧠 ANSWER ✔✔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 - 🧠 ANSWER ✔✔a firm increasing its size
through investment in capital equipment/an increased labour force
Private sector organisations - 🧠 ANSWER ✔✔organisations owned by
individuals or companies rather than the state
Public sector organisations - 🧠 ANSWER ✔✔organisations owned and
controlled by the state
Synergy - 🧠 ANSWER ✔✔when two or more activities/firms put together
can lead to greater outcomes than the sum of the individual parts
COPYRIGHT©NINJANERD 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE. PRIVACY
2
STATEMENT. ALL RIGHTS RESERVED
, Vertical integration - 🧠 ANSWER ✔✔a joining together into one firm of two
or more firms in the same industry at different stages of production
Average revenue - 🧠 ANSWER ✔✔the average receipts per unit sold //
TR÷Q
Marginal revenue - 🧠 ANSWER ✔✔the addition to total revenue of an extra
unit sold // ΔTR÷ΔQ
Total revenue - 🧠 ANSWER ✔✔the total amount of money received from
the sale of any given quantity of output // AR*Q
Average product - 🧠 ANSWER ✔✔the quantity of output per unit of factor
input // total product÷level of output
Law of diminishing marginal returns - 🧠 ANSWER ✔✔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 - 🧠 ANSWER ✔✔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
COPYRIGHT©NINJANERD 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE. PRIVACY
3
STATEMENT. ALL RIGHTS RESERVED
2024/2025 Exam Questions Marking
Scheme New Update | A+ Rated
Backwards vertical integration - 🧠 ANSWER ✔✔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 - 🧠 ANSWER ✔✔a joining together into one firm
of two or more firms producing unrelated products
Demerger - 🧠 ANSWER ✔✔when a firm splits into two or more
independent businesses
Divorce of ownership from control - 🧠 ANSWER ✔✔when managers and
directors of a business are different from the owners of a business (the
shareholders)
Forward vertical integration - 🧠 ANSWER ✔✔a joining together into one
firm of two or more firms where the supplier merges with/takes over one or
more of its buyers
COPYRIGHT©NINJANERD 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE. PRIVACY
1
STATEMENT. ALL RIGHTS RESERVED
,Horizontal integration - 🧠 ANSWER ✔✔a joining together of two firms in the
same industry at the same stage of production
Niche market - 🧠 ANSWER ✔✔a small segment of a larger market
Merger/integration - 🧠 ANSWER ✔✔the joining together of two or more
firms under common ownership
Not-for-profit organisations - 🧠 ANSWER ✔✔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 - 🧠 ANSWER ✔✔a firm increasing its size
through investment in capital equipment/an increased labour force
Private sector organisations - 🧠 ANSWER ✔✔organisations owned by
individuals or companies rather than the state
Public sector organisations - 🧠 ANSWER ✔✔organisations owned and
controlled by the state
Synergy - 🧠 ANSWER ✔✔when two or more activities/firms put together
can lead to greater outcomes than the sum of the individual parts
COPYRIGHT©NINJANERD 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE. PRIVACY
2
STATEMENT. ALL RIGHTS RESERVED
, Vertical integration - 🧠 ANSWER ✔✔a joining together into one firm of two
or more firms in the same industry at different stages of production
Average revenue - 🧠 ANSWER ✔✔the average receipts per unit sold //
TR÷Q
Marginal revenue - 🧠 ANSWER ✔✔the addition to total revenue of an extra
unit sold // ΔTR÷ΔQ
Total revenue - 🧠 ANSWER ✔✔the total amount of money received from
the sale of any given quantity of output // AR*Q
Average product - 🧠 ANSWER ✔✔the quantity of output per unit of factor
input // total product÷level of output
Law of diminishing marginal returns - 🧠 ANSWER ✔✔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 - 🧠 ANSWER ✔✔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
COPYRIGHT©NINJANERD 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE. PRIVACY
3
STATEMENT. ALL RIGHTS RESERVED
