AQA A2 Economics Unit 3 - 12th June 2012 PM

Evaluate the view that "trade unions raise wage rates for their members, but only at the expense of jobs"

What points could you consider?
Yes they do raise the wage rates in a competitive labour market which will be at the cost of jobs as firms reduce their workforce. If it is a monopsony they counterbalance the fall in employment.
But what else is there to write about? :s

Does anyone know what is likely to come up? Because I don't want to revise everything because you only get tested on a small amount really. I know no one can really predict but maybe based on what came up last time or what hasn't came up recently?

Since Jake did not provide an answer for 1, you might want to consider intervention as a possibility, that is, government regulatory systems such as OFGEM in the gas/electricity markets, which aim to promote, or at least threaten monopolies with contestability.

Oh okay than you
But for a 25 marker on evaluate how to reduce a monopoly to a contestable market there should be 3 arguments right
So 1 - reduce barriers to entry
2 - regulate with OFGEM/ competition commission and oft
But the third? Oh I hope contestable markets don't come up Lol x

Would subsidies come under barriers to entry? I hope it doesn't some up either. "Are oligopolies good or bad" will be a good essay haha, can wing some marks there.

I have no idea Lol I think subsidies can help firms enter the market but subsidies it self don't lower the barriers to entry
I was thinking maybe ways to make a mono more contestable reducing barriers to entry and exit but if it's a state mono then privatise it maybe?

If a question came up on theory of the firm and it was something like 'Profit maximisation is always the main objective of firms.' Discuss.

How would you argue that profit maximisation is always their main objective? I know you could talk about other points such as other objectives, lack of info to profit maximise, divorce of ownership, principle-agent problem etc, but how do you argue that firms wills always profit maximise?

Do you say things such as profit being their main objective in starting up businesses, shareholder pressure and managers wanting to build up their prestige through becoming profit maximising individuals etc?

If anyone has any example essays/questions or anything on market structures, that's be great!

Any kind of evaluative points at all would be really useful.

Hey was wondering if you guys can help

1) how do you make a monopoly more contestable?
2) how do you reduce barriers to entry

Thanksss

If anyone has any example essays/questions or anything on market structures, that's be great!

Any kind of evaluative points at all would be really useful.

If a question came up on theory of the firm and it was something like 'Profit maximisation is always the main objective of firms.' Discuss.

How would you argue that profit maximisation is always their main objective? I know you could talk about other points such as other objectives, lack of info to profit maximise, divorce of ownership, principle-agent problem etc, but how do you argue that firms wills always profit maximise?

Do you say things such as profit being their main objective in starting up businesses, shareholder pressure and managers wanting to build up their prestige through becoming profit maximising individuals etc?

How are you all revising the day before the exam? Just practising essays? It feels so unproductive to write an essay because it could be on a completely irrelevant topic?