1
Q
What is the effect of diversification?
A
Diversification into different product areas will allow greater scope to increase revenues
2
Q
What are the effects of competition?
A
Competition tends to lead to lower prices and lead to a greater choice of products
3
Q
What do firms do in order to make themselves more competitive? (3)
A
Reduced costs of production
Improve quality
Better standards of service
Microeconomics year 1
flashcards
Decks in class (31)
# Cards
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1.1 Economic methodology6
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1.2 Nature and Purpose of Economic Activity10
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1.3 Economic Resources8
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1.4 Scarcity, choice, and the allocation of resources7
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1.5 PPF's/PPC's9
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2.1 The determinants of demand19
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2.2 Price, income and cross elasticities of demand26
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2.3 The determinants of supply8
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2.4 Price elasticity of supply7
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2.5 The determination of market equilibrium8
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2.6 The interrelationship between markets7
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2.7 Application to particular markets6
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3.1 Productivity and production10
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3.2 Specialisation, division of labour and exchange6
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3.3 Costs of production15
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3.4 Economies and Diseconomies of Scale14
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3.5 Average revenue, total revenue and profit4
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4.1 Market structures13
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4.2 The objectives of firms9
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4.3 Competitive markets6
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4.4 Monopoly and Monopoly Power26
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4.5 The competitive process3
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5.1 How markets and prices allocate resources8
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5.2 The meaning of market failure6
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5.3 Public goods, private goods and quasi-public goods8
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5.4 Positive and negative externalities in production and consumption19
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5.5 Merit and demerit goods8
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5.6 Market imperfections15
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5.7 Inequitable distribution of income and wealth0
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5.8 Government intervention in markets22
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5.9 Government failure7
