Unit 3

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Across
  1. 3. A firm experiences this when long-run average costs fall as output rises
  2. 6. is money earned by a firm for selling its output
  3. 7. a type of strategy which uses methods such as advertising, marketing, branding and differentiation to increase competitive advantage
  4. 9. occurs when large firms in an oligopoly form a cartel to act as a monopoly to restrict output and raise prices
  5. 12. occurs when a firm charges different consumers different prices for identical goods
  6. 14. is where a doubling of inputs leads to a doubling of output
  7. 18. a type of merger that occurs when two firms who have no common production interests merge
  8. 19. is the sale of state-owned assets/enterprises/industries to the private sector
  9. 22. is the act of satisfying or sufficing different stakeholders
  10. 23. models interdependent firms in a duopoly with a pay-off matrix to recognize rival behaviour, strategies and a best solution
  11. 24. occurs when there are a few large dominant firms, large firms are interdependent and there are significant entry/exit barriers
Down
  1. 1. is the difference between revenue and costs
  2. 2. A firm is this when lack of competition leads to costs higher than they would be with competition
  3. 4. is the minimum scale to fully benefit from economies of scale
  4. 5. is the removal of government controls (red tape, laws and regulations) over markets
  5. 8. are perfect substitutes
  6. 10. are costs that vary directly with output
  7. 11. is the separation of a firm into two or more independent businesses
  8. 13. are costs that cannot be recovered upon exiting a market
  9. 15. occurs when an incumbent firm sets a price so low that they earn normal profit (or low super-normal profit) to make rivals make a loss (because they are not as efficient)
  10. 16. Regulators may set this to industries to limit each year’s price increase to only RPI-x
  11. 17. a type of integration that occurs when a buyer buys a supplier and becomes closer to the raw materials in the supply chain
  12. 19. A firm is this if it has the power to set its price
  13. 20. occurs when two or more firms join together under common ownership
  14. 21. is the only buyer in a market