OCR F581 Markets in Action - 11 May 2015

Allocative efficiency means being able to produce goods that are satisfied by consumers r8? the condition is P=MC..
WHAT ABOUT MONOPOLISTICALLY COMPETITIVE MARKETS?

OCR students do not learn about Monopoly markets, thats AQA

Oh I do edexcel.. By the way do you have any notes you prepared? I would appreciate any help..

Why would subsidy be used on goods with negative externalities...?

This is an awesome site for note taking/ Reading notes, it helps a lot: http://beta.tutor2u.net/economics/reference/as-macroeconomics-study-notes-topic-listing

This is notes for all exam boards, some of the topics listed may not be for Edexcel i don't know though because i do OCR, hope it helps though.

the bit that confused me was that it said subsidies for producer - it didn't specify if it was producers who supply goods which have pos/neg ex. or merit/demerit goods.. so i talked about how they would solve market failure for positive/merit goods, but then as an evaluative point talked about how it would be the wrong method for a firm producing neg/demerit good.. then i also did some other L4 comments: what size subsidy and consequences if it was too big or too small, and lastly its success is dependent on PED, then came to a conclusion..
then before all that i defined market failure+subsidy, did the subsidy diagram and explained how it would solve market failure for some firms (producing positive goods)...
can anyone tell me roughly what mark this could get?

The basic evaluative points are magnitude, time period, PED and the economic condition. In that case you havedone well plus what exam board are you ?

do you think i'll get credit for discussing the point that its not a suitable method for producers supplying demerit goods or goods with negative externalities.. as the question didnt specify a type of product? so the producers could be producing anything?

im on OCR

As the question is doubtful the examiner would want the candidate to think practically perhaps.... what was the case about? may I know? and are you in AS or AL?

it was an AS microeconomics paper, the question was something along the lines of 'Discuss whether a subsidy to producers will always correct market failure.'
It did not specify, as the question usually does, what the market failure is. Usually it would say '....correct the market failure arising from goods with negative externalities' or something like that, but this time it was more vague. But I didn't hear anyone else talking about if the producer was one supplying demerit goods etc..

To be honest, subsidies are not provided to raise the Social cost it is for the social benefit .. Ex- Subsidies to an alcohol producer??. ..had the same question for edexcel as well .. I scored 13/14. define subsidy, draw the diagram, show the consumer and producer surplus, analyse and evaluate. It is perfectly enough and one wrong point does not cost much.. your board's site plz?

yeah I know, but as the question didn't specify that it was to producers of merit goods etc, you can't say that they always correct the market failure, because 'producers' is very broad..

http://www.ocr.org.uk/qualifications/as-a-level-gce-economics-h061-h461/

yeah I know, but as the question didn't specify that it was to producers of merit goods etc, you can't say that they always correct the market failure, because 'producers' is very broad..

http://www.ocr.org.uk/qualifications/as-a-level-gce-economics-h061-h461/

Would you possibly be learning about patents?

dont think so - dont even know what that means haha

hmmmmm. It is in edexcel though..