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A2 OCR Economics F583 2016

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Reply 20

SilverHorsey

Original post by Rk2k14

Being a football fan, I wouldn't mind if it was on spectator sports :biggrin:

what would you say though? like if it said is the football industry oligopolistic?

Reply 21

Rk2k14

Original post by SilverHorsey

what would you say though? like if it said is the football industry oligopolistic?

You can agree with the statement by saying the top 4 teams in the Premier League dominate the league through results, size of club, spending power etc.
Strong barriers to entry exist through existence of brand loyalty. E.g. a new team can't enter the market and expect fans from other teams to support them because fans are very loyal to their respective teams.

Also, its an oligopoly because firms may not always seek to maximise. For example, managerial objectives such as winning the Premier League title would almost certainly be valued over profit maximisation because its essentially the aim of all teams-to be successful. Manchester United would value a PL title over profit maximisation as its a greater objective for them and would definitely keep the fans happy.

On the other hand, you can argue that each team is a monopoly to their own supporters. E.g. Arsenal's highest season ticket was around £2,013 last year, which is an example of the dominant firm as a price maker (characteristic of monopoly) as they were able to charge a significantly high amount, knowing that demand would exceed supply.

Also, you could argue that it is monopolistically competitive in the sense that products are differentiated. E.g. all teams have the same kits (shirts, shorts and socks), but they are so heavily branded by sponsors that they are differentiated. E.g. Adidas sponsor Manchester United and New Balance sponsor Liverpool. Each kit is different.

Hope it helps!

Reply 22

kamez

yes, can we have practice essays for football and we can perfect it in order to score high marks if it does come up. i will write an essay and post it and others can hopefully contribute to it!

it could also be on tv broadcasting since holidays was repeated within 3 years so tv could be repeated as well although less likely as opposed to sports...

Reply 23

SilverHorsey

Original post by Rk2k14

cheers, has helped a lot! how many marks would a q like this be do u think?

Reply 24

SilverHorsey

Original post by kamez

cheers! what year was the tv ones?

Reply 25

Rk2k14

Original post by SilverHorsey

cheers, has helped a lot! how many marks would a q like this be do u think?

Usually the 'discuss the extent to which a leisure industry of your choice is ...' are 20 markers.

Reply 26

Pato1

Actually it's very important Man U focus on profit maximising since they are on the stock market, it's better to say Man City aren't profit maximisers since they have a billionaire owner who will spend whatever he wants in order to get trophies

Reply 27

Rk2k14

Original post by Pato1

Not necessarily.
Prestige of a club like Man United demands success. The simple stature of the club brings in huge amounts of money e.g. kit deal with Adidas worth £750million. However, whilst they can earn revenue and consequently profit maximise off the pitch, the board and fans will demand to see silverware as it is the aim of all top football teams, whether you are on the stock market or not. Win the PL and share prices will rocket. Do what United have been doing for the past 3 years and shares will fall drop like flies. Performance and result is key.
https://www.theguardian.com/football/2016/feb/08/manchester-united-share-price-fall

You can actually argue that its a 'kill 2 birds with one stone' situation. By winning titles and bringing in benefits that brings, you are also likely to benefit from profit max.

Reply 28

qwertypoiop

Knowing the OCR's obsession with bending kids over I wouldn't be surprised if this year's topic is labour.

Reply 29

KingAweT

Wasn't the whole of section A and the cast study a few years back on English football though?

Reply 30

SilverHorsey

Original post by Lostrider

This is so helpful in seeing a pattern!
I guess it's very likely then this year will be on an industry. I don't mind any of them apart from spectator sports, which is (me being dramatic here) the bane of my existence atm

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in the last 10 exams theres been 5 of each, in the last 5 theres been 3 market structures and 2 labour so it could be either really, my odds being itll be on labour

Reply 31

Rk2k14

Do we only have to know how wages are determined in a perfectly competitive labour market?

Also, what are determinate of wages other than MRP?

Reply 32

SilverHorsey

does anyone know the pattern/system/structure of the 15+20 mark essays?
any predictions for them?

Reply 33

Lostrider

Original post by Rk2k14

Do we only have to know how wages are determined in a perfectly competitive labour market?

Also, what are determinate of wages other than MRP?

In the labour market as a whole wages are determined by demand and supply. E.g. excess demand and shortage of supply means wages will be higher for that occupation (also the supply and demand for labour will be relatively inelastic). And so the opposite is true for why wages may be set lower for some occupations I.e. excess of supply and shortage in demand.

And MRP comes into play, mainly I believe, for individual firms. Firms will employ more workers as long as the marginal cost of labour is lower than the the marginal revenue product I.e. The firm will employ an extra worker, at any given wage rate, as long as they bring in more revenue than cost.

MRP is seen as a demand side determinant of wage.
So if a question asked to what extent does MRP determine wages?
You'd speak about mrp and then talk about a supply side factor I.e. A trade union controls, to some extent, how many workers they wish to supply. Or you could mention the elasticity of supply as being a determinant of wages (so inelastic supply of labour would mean higher wages)

Hope this helps! If I'm being unclear just let me know, I'll try to explain it better.

As a side note I think you should watch Econplusdal on YouTube he has videos explaining all of this very very clearly :smile:

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Reply 34

Rk2k14

Original post by Lostrider

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Thanks, helped a lot!

Reply 35

kamez

Original post by Rk2k14

Do we only have to know how wages are determined in a perfectly competitive labour market?

Also, what are determinate of wages other than MRP?

wages are determined by the level of productivity as well as the employers' ability and willingness to pay. it depends on the cost of living, skills and qualifications required, time period, public opinion, government legislations, obviously the force mechanisms of demand and supply although they might be distorted due to discrimination as well as the elasticity of demand and supply both for labour...it may depend on the ease with which you can substitute labour with capital, complementary costs, it may depend on if they are doing part time or full time since average hourly pay for full time is higher and men tend to get paid more on average compared to females and depends on the flexibility of labour in the market. also the trade unions bargaining power.. you get the point, there are many determinants of wages and i might have repeated certain points since i was just typing as points came along...

Reply 36

KingAweT

Do you think it is unlikely for an any of the section A questions from last year to be repeated or any of the topics to be done as essays?

Reply 37

kamez

Original post by KingAweT

Do you think it is unlikely for an any of the section A questions from last year to be repeated or any of the topics to be done as essays?

common sense suggests yes but in this unit, you can still include the information which was asked last year...so they may ask about trade unions and therefore you may need to talk about bilateral monopoly, bargaining power, maybe monopsonists etc. depending on how it is phrased so do not rule out any topic.

Reply 38

Pato1

ageing population has a high chance of popping up

Reply 39

Lostrider

Original post by SilverHorsey

does anyone know the pattern/system/structure of the 15+20 mark essays?
any predictions for them?

I don't have a system per say. But looking at previous papers it seems MRP theory comes up all the time, it did not come up last year, so there's a big chance it will this year.

For the market structures I feel like oligopoly is unlikely compared to monopoly and monopolistic competition, as it has been on twice previously.

Also, pretty much they ask every year 'to what extent can government intervention correct the labour market failure arising from....' so I think it's really important we know about gov intervention (the main one being NMW because there's a good simple diagram that goes with that)

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