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Reply 240
Original post by Dilzo999
Regulatory capture is a good evaluation for regulation (And it also sounds cool :biggrin:).


what is reg. capture? can u explain please? thanks.
Original post by Trilo9y
what is reg. capture? can u explain please? thanks.

Regulatory capture is when corruption occurs in the regulatory agencies and they form special relationships with the firms they're supposed to regulate thus rather than acting for the public's interest they act in ways that benefits the industry instead.
Reply 242
With reference to an industry of your choice, examine strategies firms might use to increase consumer loyalty. Use game theory to support your answer (12)

How do you use game theory to explain a strategy for firms to increase consumer loyalty? What other evaluation other than typical fines etc?
Can someone explain what prisoner's dilemma is?
Reply 244
Prisoners dilema is where two players do not know the strategy of the other, the optimum strategy for both will lead to a worse situation than if they were able to consult (collude) when making their decision. You would then draw the pay off matrix and explain the different outcomes e.g collusion, cheating/ undercutting
Tip: 50% for KAA and 50% for evaluation for each question (except the 4m question) in section b. So calculate what 50% of the total marks is if you don't know how much to write
Does anyone know how to use the kinked demand curve as an evaluation or explanation for oligopolies?
Original post by areddishherring
Does anyone know how to use the kinked demand curve as an evaluation or explanation for oligopolies?

Post #22 explains it pretty well http://www.thestudentroom.co.uk/showthread.php?t=2696698&page=2 and further posts beyond that.

Also does anyone have a concise definition of the law of diminishing marginal returns? Thanks :smile:.
Reply 248
Original post by Dilzo999
Post #22 explains it pretty well http://www.thestudentroom.co.uk/showthread.php?t=2696698&page=2 and further posts beyond that.

Also does anyone have a concise definition of the law of diminishing marginal returns? Thanks :smile:.


Original post by areddishherring
Does anyone know which are the factors that determine monopsony power? Or the simplest definition of Law of Diminishing Returns and Game Theory?


Not sure about the first one :/

Law of diminishing returns: There is at least one fixed factor and so the marginal cost rises as more factors are added i.e. as output rises MC also rises (I THINK)


Original post by CWE
Could someone give me a guide on how many points and evaluative marks to make for each of the written answers, and is there a guide to the length of each evaluative/analysis point?


4 marker is 4KAA

8 marker is 4KAA+4E

12 marker is 6KAA+6E

16 marker is 8KAA+8E

I'd reccomend each point being worth 2 marks but if you know a certain point in detail you can do 4+2 etc
(edited 9 years ago)
Original post by tigerz
...

Thank you, for the 12 marker and 16 marker, it's recommended to do 3 points for each right? Unless it states in the question otherwise?
Reply 250
Original post by Dilzo999
Thank you, for the 12 marker and 16 marker, it's recommended to do 3 points for each right? Unless it states in the question otherwise?


I think it depends on preference, my teacher said do 2 points each aha that way you have one for insurance :smile:

It also depends on how confident you are with the question, I know my points for game theory, price discrimination and price/non strategies are in depth so do less, but contestable markets and PFI I would stick to 2.
Reply 251
Can anyone explain synergies and clash of cultures from merging?
Original post by tigerz
I think it depends on preference, my teacher said do 2 points each aha that way you have one for insurance :smile:

It also depends on how confident you are with the question, I know my points for game theory, price discrimination and price/non strategies are in depth so do less, but contestable markets and PFI I would stick to 2.

Thanks! I've given away too much rep XD. I'll try and see if I can rep later today :wink:.
if marginal costs increase, do we shift the curve to the left or right?
Reply 254
Original post by Dilzo999
Thanks! I've given away too much rep XD. I'll try and see if I can rep later today :wink:.


Haha no problem :smile:

Satisficing is when you make enough profits to keep shareholder happy?
Original post by pineapple78
if marginal costs increase, do we shift the curve to the left or right?

I believe you shift it up a bit and to the left. This diagram shows if it decreases but you should get the idea
Reply 256
Can't wait until tomorrow's exams are over and done with :smile:
Original post by AdzyN
Can't wait until tomorrow's exams are over and done with :smile:


Find it hard to differentiate between Fixed and variable costs , can anyone please list factors in each? Many thanks.
Reply 258
Fixed costs do not vary with output. - examples include rent or salaries
Variable costs do vary with output. - examples may include wages
Original post by peter qwert
Find it hard to differentiate between Fixed and variable costs , can anyone please list factors in each? Many thanks.


Fixed Costs: do not vary with output - salaries of contracted staff (managers, executives), rent for factories & buildings, cost of capital goods (machinery), marketing/advertisement

Variable Costs: vary with output - hourly wages of staff (part-time/low-level employees), raw materials (coal, fuel, sugar, salt, cotton)