Business Economics - Mind Map

Mind Maps have been produced to introduce topics and give students an overview of key topics being studied. The maps can be viewed as a whole page or, for those who prefer a more linear approach, as a text version.

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Business Economics

1. The Growth of Firms
   • Motives
     • Cost Savings
     • Managerial Rewards
     • Shareholder Value
     • Asset Stripping
     • Economies of Scale
     • Efficiency
     • Synergy
     • Control of Markets
     • Risk Bearing
   • Internal Growth
   • External Growth
     • Vertical Integration
     • Horizontal Integration
     • Conglomerate Merger
   • Trans-National Corporations
2. Key Issues
   • Divorce between ownership and control
   • Diminishing Returns
   • Returns to Scale
   • Principal-Agent Problem
3. Efficiency
   • Productive
     • Lowest Cost
   • Technical
     • Minimum inputs
   • Allocative
     • Needs of Consumers (P = MC)
   • Social
     • MSC = MSB
4. Motives of Firms
   • Profit Maximisation
     • MC = MR
   • Revenue Maximisation
     • Total Revenue
     • Average Revenue
     • Marginal Revenue
   • Sales Maximisation
   • Profit Satisficing