Types and sizes of firms, production and productivity, costs and revenue, and economies of scale.
Types and size of firms
Firms operate in three sectors: primary (extracting raw materials — farming, mining), secondary (manufacturing), and tertiary (services). As economies develop, the tertiary sector usually grows largest.
Firm size is measured by number of employees, output, capital employed or market share. Firms grow through internal growth (more output) or external growth (mergers/takeovers). Many firms stay small because: the market is small, they offer personal service, the owner prefers control, or limited finance.
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