F583 - Economics of Work and Leisure - June 2014

Can anyone explain contestable market to me ? is it just the same as competitive market ?

Reply 161

Nash96

2

Its a market where there is perfect competition, so now barriers to entry/exit etc and also a key thing is that there is always the threat of potential competition so even if there is only one firm they will not profit maximise or anything like that because there is always the chance that a rival firm could enter the market :smile:

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Reply 162

Nash96

2

Original post by YAAM

Can anyone explain contestable market to me ? is it just the same as competitive market ?

Its a market where there is perfect competition, so now barriers to entry/exit etc and also a key thing is that there is always the threat of potential competition so even if there is only one firm they will not profit maximise or anything like that because there is always the chance that a rival firm could enter the market :smile:

Reply 163

Original post by Niia

I always do 3 well developed points for L3 and evaluate them, so 3 for L4 as well.
the judgement being separate to that, I get about 16/17 out of 20 with this.
hope it helps :smile:

Thank you . but for the question like "Discuss the extent to which government intervention can reduce labour market failure caused by the immobility of labour", do you give 3 different examples of intervention and evaluate each of them?

Reply 164

Original post by Nash96

Its a market where there is perfect competition, so now barriers to entry/exit etc and also a key thing is that there is always the threat of potential competition so even if there is only one firm they will not profit maximise or anything like that because there is always the chance that a rival firm could enter the market :smile:

Thanks its clear now :smile:

Reply 165

50spence

What would you guys say the biggest wage determinant factor is? Usually seen in questions such as 'Discuss the extent to which the elasticity of demand for labour is the main determinant of wages in an occupation'

Reply 166

karrlt

Original post by 50spence

What would you guys say the biggest wage determinant factor is? Usually seen in questions such as 'Discuss the extent to which the elasticity of demand for labour is the main determinant of wages in an occupation'

I usually conclude with the fact that qualifications/skills/training periods act as a barrier to entering a profession, which has the main determining influence on supply of labour. I feel that this is most important in describing why e.g. lawyers get paid more than e.g. waiters... as the demand side doesn't really account for this (IMO!)

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Reply 167

dowen123

1

Can someone be willing to make a 20/15 marker plans for questions that might show up

(edited 9 years ago)

Reply 168

For the 15 marker the mark scheme says "for a 7+ mark candidates must offer a clear real world application to the UK labour market". What does that mean and what I have to say in each case?

(edited 9 years ago)

Reply 169

May-o2q

14

How's everyone preparation for this exam?

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Reply 170

wolalala

Are there any topics that come up for the essay choices every year?

Reply 171

Annaaaaaaaa

What are the characteristics of a monopoly?

Reply 172

Do we need to know in depth about price discrimination? i.e. 1st, 2nd and 3rd degree?

Can someone confirm this with me, thanks.

Reply 173

Make sure everyone's aware of how to do the calculations!

Reply 174

dowen123

1

Original post by Kuchkuchhotahai

Make sure everyone's aware of how to do the calculations!

What calculations!? :O and how?

Reply 175

thunguyen168

Original post by Kuchkuchhotahai

Do we need to know in depth about price discrimination? i.e. 1st, 2nd and 3rd degree?

Can someone confirm this with me, thanks.

What is 1st 2nd 3rd degree????

Reply 176

NottsYellowJnr

1

Original post by thunguyen168

What is 1st 2nd 3rd degree????

1st degree - this where the firm sells each unit at the maximum each consumer is willing to pay. This means that it is better for society as there is no weight loss and it increases profits for the firm. However, there is no consumer surplus. It is very very rare, pretty much non existent, and example would probes be selling art work.

2nd degree - blocks of output are sold for different prices. Ir. The first 200 may be sold for £10 then the next 300 for £5. I think this is used in selling tickets on trains and planes. (I may be wrong).

3rd Degree - this is most common and is where firms sell at different prices depending on the consumer price elasticity of demand. Eg. Students PED is more elastic so they will be sold the product at a lower price. This is used at for example when you buy a football ticket at a football game.

Reply 177

thunguyen168

Original post by NottsYellowJnr

1st degree - this where the firm sells each unit at the maximum each consumer is willing to pay. This means that it is better for society as there is no weight loss and it increases profits for the firm. However, there is no consumer surplus. It is very very rare, pretty much non existent, and example would probes be selling art work.

2nd degree - blocks of output are sold for different prices. Ir. The first 200 may be sold for £10 then the next 300 for £5. I think this is used in selling tickets on trains and planes. (I may be wrong).

3rd Degree - this is most common and is where firms sell at different prices depending on the consumer price elasticity of demand. Eg. Students PED is more elastic so they will be sold the product at a lower price. This is used at for example when you buy a football ticket at a football game.

Thanks!

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Reply 178

Original post by dowen123

What calculations!? :O and how?

Participation ratio, Female participation ratio etc..

Original post by thunguyen168

What is 1st 2nd 3rd degree????

Sorry I never replied in time, but what the other person said. Its useful to discuss in monopoly/oligopoly questions for evaluation purposes... I've never seen it come up in a past paper though.

Reply 179