Unit 3 – Business Behaviour

You can find notes for Unit 3 here:

• Contextual Analysis

The Firm and its Objectives

• a) Objectives
• b) Size of businesses

Revenue, Costs and Profit

• a) Revenue
• b) Costs
• c) Economies and diseconomies of scale
• d) Profit

Market Structures and Contestability

• a) Perfect competition
• b) Monopolistic competition
• c) Oligopoly
• d) Monopoly
• e) Monopsony
• f) Contestability

Government Intervention to Promote Competition

• ab) Government intervention to protect consumers, suppliers and employees
• c) Government intervention to promote international competitiveness
• d) Government policy towards transnational companies (TNCs)