A2 Edexcel Unit 3 12th June 2012 Megathread

I got all those except for 4. That question was horrid!

A was that I think. I didn't even know what that answer meant! I put AC is falling... Was that D?

Ohhhh damn ahah, I think it must have been because I think I remember putting that! Damn. Really weird question to give though!

There won't be many people getting that right, that's for sure. Did two knockouts and a definition of MC thought so might manage to get 3 marks xD

Oh well. Yeah I just put definitions on the ones I didn't know ahha. Well I have 6/8 according to our collective answers. Might be 7 depending on the bus answer but seeing as you both got the same answer Ill have to assume you're right for the time being. Ill get to my teacher on Saturdays revision for unit 4 to get the answers haha. Thanks!

I think I put cutting price below AVC because that's what predatory pricing is...

Good stuff! What grade are you aiming for? Grade boundaries will reflect the touch multiple choice anyways.

I'm a repeater. I have 307/400 ums from last year so I need 13 better than last year to get an A.

In this exam last year I got 56/80 so 69/80 would finish it all for me. However it didn't go that well, so any improvement would be welcome. Now I have it all to do in Unit 4, last year I got 86/120. So I'm really aiming for 100 in that.

You?

Fair play. Well by the sounds of it you've made good inroads into it so all you need do is get every so slightly more on Unit 4. I'm doing these for the first time. Got 165 at AS so I need 155 overall to get my A. I think it's still on the cards given that yesterday went reasonably well. I'm hoping to have got 72/80 yesterday so I'd only need 83/120 in unit 4.

1. Horizontal integration
2. Drew the diagram - think I got decrease in price increase in output (don't take my word for it)
3. Vertical integration acts as a barrier to entry.
4. That increasing section of MC? Got that wrong, my teacher said it was diminishing marginal rate?
5. Profit maximising table. Did output 2-3
6. Was this about predatory behavior? I put price set below AVC.
- Not sure if it was predatory pricing or limit pricing tho, as it said 'new entrants'.
7. Question about Cartels was the short term profit for an individual.
8. Question about PFI was that public sector could not raise initial funds (perhaps due to fiscal defecit).

Not sure if they are in the right order.

Question 10 Data Response:

a) Market structure: Oligopoly - mentioned characteristics and proof from the extract.

b) Why they have turned losses to profits - talked about falling costs, drew a fall in AC and MC and mentioned reasons from the extract

c) How contestable was the market:
It was contestable because:
- Evidence of new entrants
- Changing trends e.g. for less gas guzzlers and more mid-range cars
- Linked with vacant niches
Wrote a couple more things that I have forgot.

Was not contestable because:
-Toyota had most efficient manufacturing - linked to economics of scale
-Mentioned managerial economics of scale because extract mentioned strong management
-Significant sunk costs - e.g. Marketing/Advertising with examples
Forgot my other points...

d)Pricing/Non-pricing strategies to increase revenue.

Pricing:
-Limit pricing
-Predatory pricing
-Sales maximisation

Non-pricing:
-Advertising + Marketing
- Celebrity Endorsement
- Merger/Integration
- Special discounts.

For (b) i talked about demand increasing cause banks were willing to lend more money and drew the demand increasing diagram... is it correct ?

For (b) i talked about demand increasing cause banks were willing to lend more money and drew the demand increasing diagram... is it correct ?

I think this is right. You could either do change in costs or change in revenue and increased demand would cause higher revenue

Sec A
1. Horizontal integration
2. Drew the diagram - think I got decrease in price increase in output

For 2 I got decrease in output and price. The output decreases for an individual firm or was it talking about the whole industry?

Also for question 10b I only shifted AC not AC AND MC. Would I get marked down?

Thanks

i think...
10)b) i shifted both AC and MC.. i guess they will cut 1 mark.. which one u choose for no 4?