Edexcel Economics and Business UNIT 4 6EB04

Agree with all apart from number 1
Although there has been a lot of high value mergers/takeovers the CMA has yet to block any of them and it's also not mentioned in the case study so you don't have much supporting evidence to use even though the examiners want a balance between own knowledge and case study evidence

If you want any help, I have some model answers and mark schemes to most of these question.

If you want any help, I have some model answers and mark schemes to most of these question.

Based on previous 20 and 30 marks, one of them has always been about Market Failure in the industry, i.e. Tobacco Industry. I have a few predictions about the 20 and 30 mark questions:

1) Assess the effectiveness of competition authorities in correcting the market failure in the tobacco industry

2) Discuss how command and control measures can be effective in reducing the market failure in the tobacco industry

3) Assess whether the government was effective in correcting the market failure in the tobacco industry OR Evaluate the government's response to market failure in the tobacco industry

4) Assess the view that e-cigarettes are merit goods (most likely a 20 mark question)

5) Evaluate the extent to which regulation is needed in the tobacco industry

6) Assess the effectiveness of taxation as a method for reducing smoking

7) Evaluate how tobacco manufacturers might respond to the changing pattern of demand for cigarettes and e-cigarettes

Just to point out, if the question is similar to question 3, focus mainly on government failure rather than market failure. You can state the market failures and what the government has done to correct it but always link back to whether the method was effective in the evaluation.

Also, don't forget to write a conclusion at the end of the 20 and 30 marks.

Yes please I would really appreciate that actually if you don't mind?

Could you pm me this please?

Could I have a model answer for question 2. This was not covered in class. Thanks

Thanks, what's command and control? Is it basically the same as government intervention? And also do you have anything to do with the competition authority

Command and control are any measures/government policies/bans used to control the consumption of a specific good, in this case tobacco. It is practically government intervention as the government implement these bans/policies.

I'll try and find my 20 mark essay on the competition authority and post asap.

Thank you very much

Sorry for the delay, here is the 20 mark essay on the competition authorities. It can be a 20 or 30 mark question but it is most likely to be a 20 mark question. I did it as a 30 mark question, however if it was a 20 mark question you can ignore the third main paragraph.

do you have anything to do with how tobacco might respond to changing patterns in demand?

This will most likely be about the shift in demand away from cigarettes towards e cigarettes rather than just within tobacco
However within tobacco you could talk about consumers switching from straights to rollies as they are cheaper perhaps?

true, and what will tobacco companies do to deal with this change in demand?

Command and control are any measures/government policies/bans used to control the consumption of a specific good, in this case tobacco. It is practically government intervention as the government implement these bans/policies.

I'll try and find my 20 mark essay on the competition authority and post asap.

Do you by any chance have the mark scheme for this question?

4) Assess the view that e-cigarettes are merit goods

This would link perfectly with tobacco firms buying e-cigarette firms (Imperial Tobacco purchasing Blu E-Cig), and you could also talk about how they may begin to invest into producing rolling tobacco as the demand for that is increasing. Main thing would be linking it to e-cigarettes and how tobacco firms are entering the e-cig market.

ah okay, is there anything to do with the takeovers in our evidence?