1
Q
Why may a business want to pursue a strategy of growth
A
Gain dominance of the market
Create barriers to entry for potential new competitors
Increase market share and sales so higher profit
2
Q
Demerger
A
Separation of a firm into 2 or more smaller firms
3
Q
Diseconomies of scale
A
Rising LRAC as output rises
4
Q
Why may a firm choose to remain small
A
Lack of access to finance
Size of the market may offer little scope for expansion
Size of market may offer little scope for expansion
Economics
flashcards
Decks in class (26)
# Cards
-
Economic Growth18
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Microeconomics 1.124
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AS Microeconomics104
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AS Macroeconomics67
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Theme 1 25 Markers5
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Macro27
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3.14
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A2 Macroeconomics20
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A2 Microeconomics29
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v11380
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v113 ma55
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Normative and Positive Statements (1.1.2)3
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PPF and Opportunity Cost (1.1.3 & 1.1.4)13
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Specialisation (1.1.5)6
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Types of Economies (1.1.6)10
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Rational & Irrational Behaviour (1.2.1 & 1.2.10)5
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Demand and Supply (1.2.2 & 1.2.4)0
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Elasticities (1.2.3 & 1.2.5)0
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Consumer and Producer Surplus (1.2.8)0
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Market Failure (1.3)0
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Externalities (1.3.2)0
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Subsidies (1.4.1)0
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Indirect Tax (1.4.1)0
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Government Intervention in Markets (1.4.1)0
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Tradable Pollution Permits (1.4.1)0
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Government Failure (1.4.2)0
