What would be most likely to encourage a firm to grow internally?

3.5.1 classification of firms (In terms of primary/secondary/tertiary sectors and private/public sector, and the relative size of firms.)

3.5.2 small firms (The advantages and disadvantages of small firms, the challenges facing small firms and reasons for their existence.)

3.5.3 causes and forms of the growth of firms (Internal growth, for example increased market share. External growth, for example mergers.)

3.5.4 Mergers (Examples, advantages and disadvantages of different types of mergers: horizontal, vertical, and conglomerate.)

3.5.5 economies and diseconomies of scale (How internal and external economies and diseconomies of scale can affect a firm/industry as the scale of production changes.)

3.7.1 definition of costs of production:Total cost (TC), average total cost (ATC), fixed cost (FC), variable cost (VC), average fixed cost (AFC), average variable cost (AVC).

3.7.2 calculation of costs of production: Definition, drawing and interpretation of diagrams that show how changes in output affect costs of production.

3.7.3 definition of revenue: Total revenue (TR) and average revenue (AR).

3.7.4 calculation of revenue: Calculation of TR and AR

3.7.5 objectives of firms: Survival, social welfare, profit maximisation and growth.