Revision: Growth of Businesses

The growth of businesses is related to several other topics at A2 level – including:

Economies of scale and scope
Development of monopoly power in markets
Different objectives of businesses e.g. growth max rather than pure profit max
The role of profit in allocating scarce resources
Competition policy and economic welfare – market power issues

This 3 page revision note looks at why firms grow and how they grow with lots of recent examples to supplement your notes. There are no analysis diagrams in this revision note - but do think about which diagrams you might be able to use.

Revision note:
Business_Growth.pdf

BMW - Bavarian Monopolist at Work [24 May 2012]
Unit 3 Micro: Game Theory and Business Economics [21 May 2012]
Unit 2 Macro: Positive and Negative Multiplier Effects [20 May 2012]
Unit 2 Macro: The Importance of Productivity [20 May 2012]
Unit 2 Macro: Revision Notes on Supply-side Policies [10 May 2012]
Unit 2 Macro: Model answer for revision data question [9 May 2012]
Unit 1 Micro: Using the Cost-Benefit Principle [30 Apr 2012]
Tullow Oil and African Development [25 Apr 2012]
Unit 4 Macro: The Euro Zone Crisis (Revision) [22 Apr 2012]
Unit 3 Micro: Quiz on Business Costs and Profits [11 Apr 2012]
Unit 3 Micro: Quiz on Market Structures [11 Apr 2012]
Unit 3 Micro: Evaluation Question on Supermarkets [11 Apr 2012]
Unit 1 Micro: Market Failure in Private Health Care [8 Apr 2012]
Unit 3 Micro: Revision on Contestable Markets [8 Apr 2012]
Unit 3 Micro: Revision on Monopoly Price and Output [6 Apr 2012]
Unit 3 Micro: Monopoly and Economic Welfare [6 Apr 2012]
Unit 1 Micro: Revision on Price Elasticity of Supply [5 Apr 2012]
Unit 3 Micro: Revision on Takeovers and Mergers [3 Apr 2012]
Unit 4 Macro: Productivity Improvements in China [3 Apr 2012]
Unit 1 Micro: Revision on Producer Subsidies [2 Apr 2012]
Unit 3 Micro: Revision on Scale Economies, Technology and Prices [1 Apr 2012]
Unit 1 Micro: Nottingham introduces workplace parking tax [1 Apr 2012]
Unit 2 Macro: Revision on Capital Investment [30 Mar 2012]
Unit 3 Micro: EU Imposes Further Price Cap on Mobile Phone Companies [29 Mar 2012]
Unit 4 Macro: Evaluating 3 Years of Quantitative Easing [27 Mar 2012]
Adapt or Die - Lord Bilimoria and the Cobra Story [4 Mar 2012]
Unit 1 Micro: Breaking Down the Cost of Gas [4 Mar 2012]
Unit 1 Micro: Public Goods [11 Feb 2012]
Unit 4 Macro: Focus on India - Supply Side Issues [25 Jan 2012]
Unit 1 Micro: Can the UK Computer Games Industry Grow [24 Jan 2012]
Unit 2 Macro: Factors Driving Business Investment [10 Jan 2012]
2012 - Carnage on the High Street [28 Dec 2011]
Unit 3 Micro: Sub Normal Profits - BP Leaves the Solar Industry [21 Dec 2011]
Unit 3 Micro: Oligopoly and Duopoly in Bus Markets [20 Dec 2011]
Unit 3 Micro: Patent Wars- A Touchy Subject for Apple [16 Dec 2011]
Unit 3 Micro: Brand Loyalty in Mobile Phones [27 Nov 2011]
MON€Y PANIC$ – A Visualisation Challenge [18 Nov 2011]
Unit 2 Macro: Should the EU introduce a Tobin Tax? [14 Nov 2011]
LSE lecture: Darwin economy [13 Nov 2011]
AS Macro: The State of British Business [13 Nov 2011]
Unit 3 Micro: Examples of Price Discrimination in Action [31 Oct 2011]
Unit 3 Micro: UK Executive Pay - All in it Together? [29 Oct 2011]
Unit 3 Micro: Ofcom gives stamp of approval for flexible pricing in mail [21 Oct 2011]
Unit 1 Micro: Exercise on Market Supply [26 Sep 2011]
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Unit 1 Micro: Cotton Prices and the Retail Price of Clothing [13 Jul 2011]
Unit 1 Micro: Economics of Volatile Corn Prices [12 Jul 2011]
Unit 4 Macro: Dangers of High Inflation [11 Jul 2011]
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Six Global Trends Shaping Business Strategy [15 Jun 2011]
AS Macro Key Term: Supply-Side Policies [25 May 2011]
AS Macro Key Term: Demand Pull Inflation [24 May 2011]
AS Macro Key Term: Cost Push Inflation [24 May 2011]
AS Macro Key Term: Recession [23 May 2011]
AS Macro Key Term: Spare Capacity [23 May 2011]
AQA A2 Economics - European Context [23 May 2011]
A2 Micro: Competition Policy [20 May 2011]
A2 Micro: Oligopoly and Collusion [20 May 2011]
A2 Micro: Oligopoly [20 May 2011]
A2 Micro: Price Discrimination [19 May 2011]
A2 Micro: Entry Barriers in Markets [19 May 2011]
Unit 3 Micro: Monopsony Power in Markets [19 May 2011]
A2 Micro: The Importance of Profit [19 May 2011]
A2 Micro: Market Structure, Conduct & Performance [19 May 2011]
A2 Micro: High and Low Marginal Cost Products [19 May 2011]
A2 Micro: Consequences of Price Discrimination [19 May 2011]
A2 Micro: Examples of Price Discrimination [19 May 2011]
Unit 3 Micro: Perfect Competition [19 May 2011]
A2 Micro: Competition and Efficiency [19 May 2011]
A2 Micro: Outsourcing [18 May 2011]
A2 Micro: Business Growth [18 May 2011]
A2 Micro: Innovation and Economic Policies [18 May 2011]
A2 Micro: Innovation Efficiency and Welfare [18 May 2011]
A2 Micro: Moving Away from Profit Max [18 May 2011]
A2 Micro: Minimum Efficient Scale [18 May 2011]
A2 Micro: Economies of Scope [18 May 2011]
AS and A2 Macro Revision: Keynesian Economics [28 Apr 2011]
A2 Micro: EU Aviation - State Aid and State Ownership [28 Apr 2011]
Wiki Revision: A to Z on Monopoly [23 Apr 2011]
A2 Micro: Changes in Costs and Profits [23 Apr 2011]
Rise in investment could kick start recovery [18 Apr 2011]
Key AS Micro Terms: Competition and Monopoly [17 Apr 2011]
Key AS Micro Terms: Economic Efficiency [16 Apr 2011]
Key AS Micro Terms: Costs and Profits [16 Apr 2011]
Smartphones and Creative Destruction [16 Apr 2011]
Soap powder cartel leaves stain on colluders [13 Apr 2011]
AS Micro: Prices for New and Second Hand Cars [9 Apr 2011]
A2 Micro: Updates on Competition Issues [2 Apr 2011]
AS Micro Revision: Banana Prices [1 Apr 2011]
The New North - Population Shift [23 Mar 2011]
Timetric: Price convergence within the EU [13 Mar 2011]
AS Macro Revision: Investment Spending [12 Mar 2011]
Tenner Tycoon - enterprise competition [7 Mar 2011]
Never Mind Plan B - Plan V needed for the UK Economy! [17 Feb 2011]
Economics Q&A: What factors help to explain rising food prices? [14 Feb 2011]
Nokia and Microsoft form strategic partnership [12 Feb 2011]
Shared Value and the Limitations of CSR [12 Feb 2011]
Changes in Real Prices [24 Jan 2011]
Winner of the Fun Theory Competition [23 Jan 2011]

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