Theme 3 – Business Behaviour & the Labour Market

This theme is included in A-Level Paper 1 and Paper 3 for Edexcel Economics (A). You can find notes for it below:

Business Growth

• a) Sizes and types of firms
• b) Business growth
• c) Demergers

Business Objectives

• a) Business objectives

Revenues, Costs and Profits

• a) Revenue
• b) Costs
• c) Economies and diseconomies of scale
• d) Normal profits, supernormal profits and losses

Market Structures

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

Labour Markets

• a) Demand for labour
• b) Supply of labour
• c) Wage determination in competitive and non-competitive markets

Government Intervention

• a) Government intervention
• b) The impact of government intervention