Firms And Industry SS1 Economics Lesson Note

FIRM

The firm is an independently administered business unit carrying out production, construction, or distribution activities. Examples of firms in Nigeria are Dangote Cement and Cadbury Nigeria Plc.

PLANT

This is the same as the factory. It consists of the tools, equipment, machines and buildings of a business concern. It is a business establishment or the actual place where production is organized. E.g Aladja steel plant, etc.

INDUSTRY

An industry consists of a group of firms producing broadly similar commodities. Examples are the shoe industry, the transport industry, the cement industry, etc.

FACTORS THAT DETERMINE THE SIZE OF A FIRM

1. Capital Available
2. Size of the market
3. Ability of the entrepreneur
4. Availability of raw material
5. Level of technology
6. Efficiency of management
7. Policy of the government
8. Nature of the product
9. Stage of development