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    (Original post by badgyal)
    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!
    At any output less than mc=mr, increasing output would yield greater marginal increases to revenue than to total cost thus leading to higher profit. Output greater than the point of mc=mr would see the opposite, i.e costs rising faster than revenue.
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    (Original post by Anymorefor123)
    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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    This is a good understanding of the concept!
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    (Original post by BirdIsWord)
    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?
    ayy tyler 1 army
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    What predictions are there ? What do you all think is going to come up on Monday ?


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    If you get a multiple choice anwser letter wrong you can get a maximum of 2 marks, is this true?
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    (Original post by Iscodisco)
    If you get a multiple choice anwser letter wrong you can get a maximum of 2 marks, is this true?
    Wut? theres no multiple choice
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    (Original post by Alextaylor6)
    ayy tyler 1 army
    hehe xd
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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
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    is anyone actually ready for the exam?
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    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
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    has anybody got any good evaluative points for price discrimination?
    i don't know how i would evaluate?
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    (Original post by badgyal)
    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
    to get an a*. as grades aren't that important. Obviously you have to do well but for an a* at a2 you HAVE to get 90% in a2 for an a*. So you'll need 180 ums.
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    Has there ever been a 25 marker on monopsony or trade unions?
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    (Original post by charanjittt)
    has anybody got any good evaluative points for price discrimination?
    i don't know how i would evaluate?
    -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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    (Original post by CharlieeY)
    Has there ever been a 25 marker on monopsony or trade unions?

    Trade unions yes , but monopsony I'm pretty sure no.. It would be incredibly difficult to just have an essay revolving about monopsony buyers I'd imagine ..

    They tend to inter grate it into the extract based q's


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    (Original post by Anymorefor123)
    -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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    can i use the economies of scale argument for third degree price discrimination?
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    (Original post by badgyal)
    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


    - Profit max diagram

    - monopoly vs perfect competition diagram

    - sales max + revenue max

    - short run and long run perfect competition

    - minimum efficient scale / economies of scale / increasing and decreasing marginal returns diagram

    - natural monopoly diagram

    - Lorenz curve

    - min wage

    - monopsony buyer of labour diagram

    - negative and positive externalities ( production and consumption )

    - taxation diagrams + subsidies + laffer curve

    - doubt you need to know the backwards bending supply curve but still ^


    The main ones I think xx



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    (Original post by charanjittt)
    can i use the economies of scale argument for third degree price discrimination?
    Not 100% .. I'm sure to degree you could but I think it's better suited to first degree .. Also you have to bear in mind in 3rd degree a lot of the time they are profit maximising .. So up to you ?


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    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?
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    (Original post by ozzie2)
    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?
    Revenue-cap regulation (OFGEM, OFWAT), Price controls/price capping and in extreme cases Nationalisation.
 
 
 
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