Karteikarten
Unit 5 Section 3
Karten in diesem Stapel (16)
- 1INNOVATIONThe process of transforming an invention into a product that customers will but. It is the commercial exploitation of an intervention
- 2RESEARCH AND DEVELOPMENTThe process of creating and designing new products and new methods of production
- 3ECONOMIES OF SCALEWhen a business benefits from its growth as shown by falling average costs. This is mainly due to bulk buying and technical economies of scale
- 4BULK BUYING ECONOMIESOccur when businesses can gain discounts on large orders from suppliers
- 5TECHNICAL ECONOMIES OF SCALEReductions in average costs of production due to the use of more advanced machinery.
- 6DISECONOMIES OF SCALEWhen a business suffers as a result of business growth this is seen by rising average costs.
- 7SPECIALISATIONFocusing on one job role, making it easier to become steadily more expert.
- 8COLLUSIONWhere several firms act together to control a market. This is normally an agreement to raise prices by the same amount. This is illegal.
- 9MONOPOLYWhere a single supplier dominates the sales in a market and therefore can set the price charged or the quantity offered to consumers.
- 10NATURAL MONOPOLYWhere market conditions mean that it is in everyone's best interest for a business to be in a monopoly position. This is because the fixed costs are so high that there isn’t room for another firm in the market eg Water companies.
- 11MONOPOLY POWERWhere a firm has 25% or more market share and therefore can influence the price or quality offered in the market eg Tesco 30% share. Such a firm will be liable to investigation by the Competition Commission.
- 12COMPETITION COMMISSIONA UK and EU government organisation that prevents business taking advantage of their market position. They can stop mergers and takeovers and will investigate collusion.
- 13GOVERNMENT REGULATIONWhere the Government uses laws and punishments to influence how the businesses behave. These are used to control the natural monopolies eg OFWAT for Water Companies. They make sure that firms are acting in the public interest and not abusing their monopoly power.
- 14SELF- REGULATIONWhere companies voluntarily agree to create and follow their own code of conduct.
- 15CORPORATE SOCIAL RESPONSIBILITYWhere a firm goes beyond the minimum requirements of the law often to convince the stakeholders in a business that its actions are in the best interests of society, not just those of its shareholders eg basic living wage
- 16PRESSURE GROUPAn organisation set up to influence businesses and government to protect stakeholders. For example Greenpeace, Trade Unions, Fair Trade Foundation
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- GCSE Economics Karteikarten am Unit 5 Section 3 , erstellt von Jack Sharp am 21/01/2015.
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