A2 Economics - F584 Transport Economics 10th June 2014

OP

Original post by guyb121

Thanks for starting the thread, the global economy one was so helpful!!!

Question: How much revision have you/people you know already done, I didn't want to confuse myself revising this and the global economy at the same time so I stuck to just revising the global economy but now I'm worried I've left it too late.......

well not too much yet, just brushed over it a few times over the past few weeks, I made decent notes throughout the year so i'm just going to revise hard over the next week. Still enough time to prepare in my eyes :smile:

Reply 3

guyb121

5

Original post by kristiancoulson

well not too much yet, just brushed over it a few times over the past few weeks, I made decent notes throughout the year so i'm just going to revise hard over the next week. Still enough time to prepare in my eyes :smile:

Naww thank you, I only need a B grade in this but the way the Global Economy and my Unit 2 resit went I'm starting to think an A might be possible...One can dream :smile:

Reply 4

tom_elsey

Our teacher (a senior examiner) has hinted at a more market failure based data response, with a lack of market failure in the essay questions this year.

Does anyone else think the same? Because market failure is the bloody easiest essay!

Reply 5

OP

Original post by tom_elsey

Our teacher (a senior examiner) has hinted at a more market failure based data response, with a lack of market failure in the essay questions this year.

Does anyone else think the same? Because market failure is the bloody easiest essay!

Depends, there's 3 questions at the end to choose from so it seems likely to come up

Reply 6

Haven't been revising this much, was stressing too much over global, but im gonna focus primarily on doing past papers, if there's any gaps hopefully that should cover it

Reply 7

chelseafan

21

Yeah im sitting this exam.

Reply 8

jckh12

Yeah am going to concentrate on this exam now F585 is over :smile:

Reply 9

JamieF95

Can anyone explain the relationship between deregulation and competition(increased competition and productivity and efficiency etc)?

Reply 10

FH1

11

Original post by tom_elsey

Our teacher (a senior examiner) has hinted at a more market failure based data response, with a lack of market failure in the essay questions this year.

Does anyone else think the same? Because market failure is the bloody easiest essay!

Market failure would be so good! Have you good any ideas about which market structures are most likely to come up?

Reply 11

jckh12

Has anyone got any good revision tips? How will you guys revise for the Transport paper?

Reply 12

OP

Original post by JamieF95

Can anyone explain the relationship between deregulation and competition(increased competition and productivity and efficiency etc)?

Deregulation basically removes all laws and restrictions within a market, therefore reducing barriers to entry increasing competition. In order to increase profit and market share, firms would need to cut costs ie increase economies of scale to reach the minimum efficient scale and become productively efficient. By becoming productively efficient it basically increases barriers of entry.

No answered perfectly, still in the F585 mindset and haven't re-read my notes yet

As it is within transport, with deregulation is good to link with the bus market as you can compare efficiency with outside+inside london. Checkout a video on youtube about manchester buses being oversupplied, it shows how deregulation can be negative

Reply 13

OP

This is what I mocked up a little earlier, could help some of you out.

15 Marker Structure for ‘’Analyse the Market characteristics of an xxx’’
This is adapted from a couple essays scoring 15/15 on this question so it seems to work, pretty straight forward too. Not too sure where L1/2/3 marks are applied here, but on the samples for ocr, it just seems 15 ticks = 15 marks.
Just go through each line, either stating what I’ve put or answer the question
Paragraph 1 Basic idea of the market structure here
Number of Firms
Type of Product
Barriers to entry
Paragraph 2: Objectives of the firms
Are they price makers or price takers?
If they are makers then there will be a downwards sloping AR curve || takers = flat elastic AR curve
Are they profit maximising?
Paragraph 3: ‘short run’
Supernormal profit or Normal profits in the short run? Use a diagram here to show this
Are they economic efficient? Explain both allocative and productive in the short run and why
Paragraph 4: ‘long run’
If there are supernormal profits, and low barriers, is there a risk of ‘hit and run firms’?
Therefore will there be supernormal/normal profits in the long run?
Is there any non-price competition?
Economic efficiency in the long run? Explain both allocative/productive in the LR and why

Reply 14

Original post by kristiancoulson

This is what I mocked up a little earlier, could help some of you out.

15 Marker Structure for ‘’Analyse the Market characteristics of an xxx’’
This is adapted from a couple essays scoring 15/15 on this question so it seems to work, pretty straight forward too. Not too sure where L1/2/3 marks are applied here, but on the samples for ocr, it just seems 15 ticks = 15 marks.
Just go through each line, either stating what I’ve put or answer the question
Paragraph 1 Basic idea of the market structure here
Number of Firms
Type of Product
Barriers to entry
Paragraph 2: Objectives of the firms
Are they price makers or price takers?
If they are makers then there will be a downwards sloping AR curve || takers = flat elastic AR curve
Are they profit maximising?
Paragraph 3: ‘short run’
Supernormal profit or Normal profits in the short run? Use a diagram here to show this
Are they economic efficient? Explain both allocative and productive in the short run and why
Paragraph 4: ‘long run’
If there are supernormal profits, and low barriers, is there a risk of ‘hit and run firms’?
Therefore will there be supernormal/normal profits in the long run?
Is there any non-price competition?
Economic efficiency in the long run? Explain both allocative/productive in the LR and why

Niceeeee

Reply 15

tom_elsey

Original post by FH1

Market failure would be so good! Have you good any ideas about which market structures are most likely to come up?

She said that in the essay questions, she thinks one will be more cost-benefit analysis related, one will be more to do with oligopolies and concentration, and the other she isn't sure for. Don't think oligopolies will be in the data response as it came up last year though!

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Reply 16

forsparta

Subbing to this thread, hopping straight from global to transport economics, this unit is less random though because we have many past papers to work with

Reply 17

Guys could someone explain firm concentration to me I dont get it at all? I would appreciate it so much! Thanks :smile:

Reply 18

OP

Original post by prabhss

Guys could someone explain firm concentration to me I dont get it at all? I would appreciate it so much! Thanks :smile:

Are you referring to the concentration ratio?

It's basically the sum of the market-share of top XX number of firms in a market.

If it asked for the top 3 concentration ratio, just add up the market-shares of the top 3 firms

Reply 19