Private firm as producer and employer
The private firm as producer and employer
Candidates should be able to:
- describe the type of business organisation in the public and private sectors: sole trader (proprietor), public limited companies, multinationals, cooperatives, state-owned enterprises (public corporations)
- describe the effects of moving firms from the public sector to the private sector and vice versa
- describe and evaluate the effects of changes in the structure of business organisations
- describe what determines the demand for factors of production
- distinguish between labour-intensive and capital-intensive production
- define productivity and recognise the difference between productivity and production
- define total and average cost, fixed and variable cost and perform simple calculations
- analyse particular situations to show changes in total and average cost as output changes
- define total and average revenue and perform simple calculations
- describe the principle of profit maximisation as a goal and recognise that business organisations may have different goals
- describe the characteristics of perfect competition and monopoly
- describe pricing and output policies in perfect competition and monopoly
- describe the main reasons for the different sizes of firms (size of market, capital, organisation)
- describe and evaluate integration, economies and diseconomies of scale
- discuss the advantages and disadvantages of monopoly.