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F583 - Economics of Work and Leisure - June 2014

I'm leaving the calculations till tomorrow evening (last minute bit of cramming) Although I'll try get back to you today with all the relevant calculations needed..

thanks

Reply 261

Shepherd_9

Original post by Fas

thanks a lot, that was very helpful! :smile:

although, what is that 'n' shaped curve thing?

It's just a curve to show total profit. When MR>MC then the curve is increasing and when MC=MR is the top of the curve and then when MC>MR the curve starts to decline. (looks an n shape)
Don't think you need to know it, just a nice extra for essays!

Reply 262

username963570

21

Original post by Shepherd_9

It's just a curve to show total profit. When MR>MC then the curve is increasing and when MC=MR is the top of the curve and then when MC>MR the curve starts to decline. (looks an n shape)
Don't think you need to know it, just a nice extra for essays!

oh hang on i think i know what you mean!

haha ah right ok, thats good then :tongue:

Reply 263

hazman18

can anyone please share an essay plan for "to what extent is a leisure market of your choice contestable (20 Marks)"

I have a few ideas but just wondering if anyone has any other ideas

Reply 264

sarbear282

I feel like I know market failure and corrections to them more than anything else on this topic :s-smilie:

what are the chances that a market failure question will come up as a section b question/s?

Reply 265

Kuchkuchhotahai

15

"Comment on whether increased competition in the cinema industry would benefit consumer?'' [5]

I've got my analysis point but what about the evaluative point i.e. why is increased competition NOT good for consumers?

Edit: I've come up with a point.

"Increased competition may lead to businesses in the Cinema industry (Oligopolistic Market structure) going into a price war, where they will be trying to price and supply products not in the interest of consumers. There may be excess supply of a particular screening of a film whereas consumers may instead want to watch another film. Consumer choice is not maximized." :smile:

(edited 9 years ago)

Reply 266

Shepherd_9

What is an example of a question in which you would have to talk about the backward bending supply curve of labour?

Reply 267

Kuchkuchhotahai

15

Original post by Shepherd_9

What is an example of a question in which you would have to talk about the backward bending supply curve of labour?

Income and substitution effect of a wage rise - so you can use it to describe 'reasons' for shortages/increases in supply for Labour to particular industries & to some extent be used to describe productivity levels of workers too.

Reply 268

Shepherd_9

Original post by Kuchkuchhotahai

Income and substitution effect of a wage rise - so you can use it to describe 'reasons' for shortages/increases in supply for Labour to particular industries & to some extent be used to describe productivity levels of workers too.

Is it a cause of labour market failure then if it could cause labour shortages?

Reply 269

username963570

21

Original post by Shepherd_9

What is an example of a question in which you would have to talk about the backward bending supply curve of labour?

"Analyse the choice between work and leisure for a worker in the short run"

Reply 270

Shepherd_9

Original post by Kuchkuchhotahai

"Comment on whether increased competition in the cinema industry would benefit consumer?'' [5]

I've got my analysis point but what about the evaluative point i.e. why is increased competition NOT good for consumers?

Edit: I've come up with a point.

"Increased competition may lead to businesses in the Cinema industry (Oligopolistic Market structure) going into a price war, where they will be trying to price and supply products not in the interest of consumers. There may be excess supply of a particular screening of a film whereas consumers may instead want to watch another film. Consumer choice is not maximized." :smile:

You could also say that if firms are facing increasing competition then the quality of products may decline in order to cut costs

Reply 271

Kuchkuchhotahai

15

Original post by Shepherd_9

Is it a cause of labour market failure then if it could cause labour shortages?

Yes exactly, its a key diagram to include with such a question and basically what Fas said too. It's a very useful tool for extra marks just using that diagram :smile:

Original post by Shepherd_9

You could also say that if firms are facing increasing competition then the quality of products may decline in order to cut costs

Thanks, a very valid point!

Reply 272

Mrgp

Analyse, using examples, the factors which determine the elasticity of supply of labour to an occupation [15]

Discuss the extent to which migration may be considered to have a positive impact on labour occupation markets. [20]

i would be very grateful if someone could write a plan for these two questions

Reply 273

thunguyen168

Original post by Mrgp

Analyse, using examples, the factors which determine the elasticity of supply of labour to an occupation [15]

L1/2: definition of PES, some examples of the factors and brief discussion of how they affect PES.

L3: Analyse 3 factors:

Qualifications: high qualifications => PES inelastic. Give an example: doctors, brain surgeons

Length of training: Again you can use doctor or lawyer. Supply will be inelastic, but in the long run will be more elastic.

The immobility of labour: Geographical, occupational. People will be less likely to move to a remote area for employment => inelastic.

Reply 274

Honeyecon

Can someone outline the structures for 20m and 15m please :smile:

Reply 275

ASKid

How can an oligopoly, monopoly, be contestable? They have sunk costs, high barriers to entry and exit etc.? Explain please

Reply 276

vonny101

What does it mean chose the leisure industry of your choice?

I know what the leisure industry is but what is an example of a specific leisure markets?

Last but not least, what is an example of a monopoly in the leisure market?

Reply 277

tsimms

1

Original post by ASKid

How can an oligopoly, monopoly, be contestable? They have sunk costs, high barriers to entry and exit etc.? Explain please

The book I've got gives the example of an airline firm and a monopoly diagram.

If a business currently has the monopoly of a specific route and rival firms realise it is profitable then they could easily change the route of one of their existing planes (therefore there would be no sunk costs as they can easily return to the previous route and low barriers to entry as they already have the planes).

In this case, the monopoly may choose not to make supernormal profit and instead operate where AR=AC in order to avoid hit-and-run competition.