[P.Patel]

Ahh thanks a lot! Predictions for tomorrow?

[Hicky]

Economics.

[nickolijak]

what do you lot think is going to come up tomorrow? I'm hoping for Market Failure and Sustainability essays (fingers crossed) !

[P.Patel]

(Original post by nickolijak)
what do you lot think is going to come up tomorrow? I'm hoping for Market Failure and Sustainability essays (fingers crossed) !

Sustainability came up in Jan, I don't think it would come up again. I'm hoping for market failure too!

[ConfusedChris]

I'd also like to know a suggested structure for 15mark Analyse questions?
I understand it's just describe in detail, but how many concepts should I include e.g. if its for negative externalities, should I talk about how negative externalities lead to market failure giving atmospheric pollution as an example or should I offer more than one externalities in my example? Also should I conclude and should it be in any depth?

[don'tTRIP.]

Have they asked about contestability of the airline market yet?

[Chazzybish]

(Original post by ConfusedChris)
I'd also like to know a suggested structure for 15mark Analyse questions?
I understand it's just describe in detail, but how many concepts should I include e.g. if its for negative externalities, should I talk about how negative externalities lead to market failure giving atmospheric pollution as an example or should I offer more than one externalities in my example? Also should I conclude and should it be in any depth?

I'd give three main points that you clearly analyse (usually mark schemes say 2 but to be safe give three as you have time and one of your points might not be as strong). That example is good, remember to apply it to transport (e.g. arising from congestion or what have you) and perhaps expand a bit on the cost of pollution (e.g. health or environmental effects). That depends however on whether the question focuses exclusively on negative externalities or whether this forms only part of a bigger point on another topic.

Generally I don't conclude 15 mark questions because there's usually nothing to say that you haven't already said and you don't get any marks for structuring your answer on 15 mark questions AFAIK. It should be quite developed - you have about 30 minutes to write it so you have plenty of time to get some depth into your points.

Hope this helps.

[koolkelv]

Well, good luck tomorrow everyone!

[mspmsp]

Any ideas on key diagrams to remember?

[P.Patel]

(Original post by mspmsp)
Any ideas on key diagrams to remember?

Market failure and the market forms (monopoly, natural monopoly, monopolistic competition and oligopoly)

[Redolent]

Does anyone know what actually happened regarding the deregulation the air travel industry a few years ago? All I know is it happened and it led to companies like Ryanair getting a decent share of the market

Also, does anyone know how they apply for runway slots or whatever it is? Is it a bit like the bidding system used on franchising?

Cheers

[Hicky]

(Original post by Redolent)
Does anyone know what actually happened regarding the deregulation the air travel industry a few years ago? All I know is it happened and it led to companies like Ryanair getting a decent share of the market

Also, does anyone know how they apply for runway slots or whatever it is? Is it a bit like the bidding system used on franchising?

Cheers

The Open Skies agreement liberalised the transatlantic market and made it so new landing slots are given to new entrants to the market. It basically made it so that any firm could buy landing slots in any airport and fly to any international airport. It increased contestability but it didn't decrease market share necessary - some international flights such as Fort Worth / Heathrow are still entirely dominated by two firms (American Airlines and British Airways).

[Redolent]

(Original post by Hicky)
The Open Skies agreement liberalised the transatlantic market and made it so new landing slots are given to new entrants to the market. It basically made it so that any firm could buy landing slots in any airport and fly to any international airport. It increased contestability but it didn't decrease market share necessary - some international flights such as Fort Worth / Heathrow are still entirely dominated by two firms (American Airlines and British Airways).

Ahh, thanks I just realised it came up in a paper a couple of years ago as one of the essay questions, but hopefully it'll come up this year as the data response or something.

I have a feeling the paper might be focused on the bus market though

[don'tTRIP.]

Is a natural monopoly productively and allocatively efficient?

[ConfusedChris]

They are allocatively efficient since they do not have a profit maximising nature and consumers are being charged the price it costs to produce one extra unit of output, instead of where MC= MR

[ConfusedChris]

What market structure is the air market in the UK- Was it an oligopoly and since deregulation market share has become less concentrated and more like monopolistic competition?

[don'tTRIP.]

(Original post by ConfusedChris)
What market structure is the air market in the UK- Was it an oligopoly and since deregulation market share has become less concentrated and more like monopolistic competition?

Prior to deregulation, I'd say the air market was very concentrated so perhaps a monopoly/duopoly? I'm pretty sure it's now an oligopoly as, although there have been many new entrants, very high barriers remain

[ray_charlene]

if these come up I'm screwed: privatisation, franchising, oligopoly, monopolistic, contestable, sustainble
I spent most time doing efficiency, coba, market failure and monopoly :/

[JACKMSS]

Privatisation came in in January in section A so I doubt it will come up again, but theres always a chance it will. My advice for this exam is to just keep a cool head and dont panic. Think about your answers before you start writing just anything.

(Original post by don'tTRIP.)
Prior to deregulation, I'd say the air market was very concentrated so perhaps a monopoly/duopoly? I'm pretty sure it's now an oligopoly as, although there have been many new entrants, very high barriers remain

This depends upon context. Before deregualtion Id say it was an oligopoly with only a few large firms competing. After deregulation things changed. Short haul flights can be said to be more contestable as they have lower barriers to entry. However, long haul flights remain an oligopoly and are less contestable as only a select few firms can afford to invest in such large aircraft and the costs of fuel needed to fly the longer distances, which act as barriers to entry for smaller firms.

[tornzy]

In my opinion,

SECTION A was wierd, especially that 2 mark question about market concentration

SECTION B - Couldnt have been happier

Overall, I thought it was an okay exam, perhaps slightly harder than Jan 2012. How did you guys find it? Grade boundary predictions?