Internal growth (also known as organic growth) happens when a company expands its business using its own resources.
Tag: firm theory
reasons for different sizes of firms
The size of a firm is determined by why some industries contain many small businesses, while others are
derivation of firm supply curve
The derivation of a firm’s supply curve explains how much a firm chooses to produce as the market
derivation of firm supply curve
The derivation of a firm’s supply curve explains how much a firm chooses to produce as the market
collusion
Collusion happens when businesses in an oligopoly (a market dominated by a few large firms) secretly work together.
non-price competition
Non-price competition occurs when businesses compete by using factors other than lowering prices. Instead of focusing on cost,
price competition
Price competition occurs when businesses try to win customers and increase their market share by offering lower prices
X-inefficiency
X-inefficiency happens when a company fails to operate at its maximum potential. Instead of producing the most output
barriers to exit
Barriers to exit are obstacles that prevent a company from leaving an industry, even when the business is
natural monopoly
A natural monopoly occurs when a single company can supply the entire market at a lower cost than