AQA A2 Economics Unit 3 (ECON3) 20th June 2016 OFFICIAL THREAD

Saw this in an Examiner's Report : 'The point isthat in the short run any move from the price and output determined by MC =MR would give lessthan maximum profit'. Could someone explain it to me please I dont understand the wording!

Hm that's slightly odd .. The only thing I could possibly think he's referring to is that in the short run in perfect comp for example where normal profits are made... If you shifted away from that level p= mc or MC= AR.. Then you'd experience a fall in profits because either you'd lower your price or if you raised it consumers would switch to the cheaper producers ...

My thoughts on it - could be wrong


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Hi, haven't seen an official discussion thread for this yet, only small ones.
How are you guys feeling? Any questions you wanna ask fellow students?
I'm really nervous for this exam, But unit 1 2 and 4 should make up for the bad result I will get What do you guys think is gonna come up?

If you get a multiple choice anwser letter wrong you can get a maximum of 2 marks, is this true?

ayy tyler 1 army

Whats everyones aspirational grades? also if I got 186 UMS last year what would I need to get an A* this year, literally so bad at grade boundary/UMS converting

has anybody got any good evaluative points for price discrimination?
i don't know how i would evaluate?

Has there ever been a 25 marker on monopsony or trade unions?

-Reduction in consumer surplus
But good for some and bad for others

- allows more people into the market e.g students with certain train discounts /elderly people

- cross subsidisation with profits + R/D investments .. Innovation e.c.t
But divorce of owner ship and control argument with satisfying/ shareholders wanting to keep any profits made

- second degree price discrimination is good because all the capacity is used up = good for the environment , less pollution e.c.t because instead of two planes you'd have one ( just an example )..

Also with second degree you could argue it encourages people to deliberately delay buying tickets knowing they're gonna go cheaper right before the date of the event e.c.t .

- with first degree could argue despite no consumer surplus all the bad points blah blah blah --> still higher output than under profit maximisation meaning H potential for economies of scale --> productive efficiency passing on these cost cuts to consumers but again divorce of ownership and control argument


Hope that helps




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safe for the replies!

also can someone list what diagrams we'll need for ECON3 I feel like I'm missing a few
I feel so unprepared

can i use the economies of scale argument for third degree price discrimination?

Hey guys I sometimes struggle with policies to break up monopolies/oligopolies as I normally can only think of a couple. What would be some policies that are able to break them up?