Private firm as producer and employer
Learning outcomes
At the end of this unit students will be able to:
- describe the type of business organisation in the public and private sectors: sole proprietors, partnerships, private companies, public companies, multi-nationals, co-operatives, public corporations;
- describe and evaluate the effects of changes in structure of business organisations;
- describe what determines the demand for factors of 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;
- 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.
