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Edexcel Economics: Unit 3 Business Economics and Economic Efficiency (June 2014) EC03 Watch

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    What did you guys get for the MCQ about an oligopoly?

    Was it (A) something about firms being interdependent?

    And for the PFI one was it (A) aswell: no immediate change in government borrowing?
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    (Original post by Farringtonn)
    What the hell was that football question. I just put profit satisficing didn't understand the others. Also for the table was one of the values a decimal? I thought I did it wrong.


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    Yes, i got a decimal too. 17.3, i think
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    (Original post by Nightw0lf07)
    What did you guys get for the MCQ about an oligopoly?

    Was it (A) something about firms being interdependent?

    And for the PFI one was it (A) aswell: no immediate change in government borrowing?
    Yup, A for both of them! .
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    (Original post by demhka)
    Yes, i got a decimal too. 17.3, i think
    Phew, yeah 17.3 answer of 4.


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    (Original post by Farringtonn)
    Falling demand, said in the passage about the market shrinking? Something about the closing down costs being cheaper than running costs.


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    Could you write about the patents being challenged so this might increase contestability should the patents be removed resulting in lower profits?
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    What points did people write for Question 9d?
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    (Original post by RedDevil014)
    Could you write about the patents being challenged so this might increase contestability should the patents be removed resulting in lower profits?
    That sounds good to me. What did you draw for your diagram??


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    (Original post by RedDevil014)
    What points did people write for Question 9d?
    Quality, innovation, advertising, predatory pricing


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    for question 9a about market structures i wrote about a monopoly instead of oligopoly do you think i'd get some marks for justification??
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    (Original post by Farringtonn)
    That sounds good to me. What did you draw for your diagram??


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    Umm, i drew the AR and MR curve shifting to the left. What about you?
    How did you evaluate this?
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    (Original post by Farringtonn)
    Quality, innovation, advertising, predatory pricing


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    Ahh nice, would collusion and limit pricing be appropriate for the question?
    What did you write for your evaluation?
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    (Original post by TheHenri)
    I stupidly put forward vertical integration, because i thought they were merging with milk seller, but my friends all put differently they put backward.

    I also did PPF wrong, ticked that private has more experience, but after exam I knew this was totally stupid, it had to be A but I read A wrongly.

    Guess the data response was alright, should be 4/4 8/8 and 16/16 but I found the 12 marker kind of hard. How did you draw your diagram? I did an upward shift of AC so AC>AR forcing firm to leave. But I couldnt understand that part in the extract somehow. So I hope this gives marks. So I put higher costs annually 500,000$ as well as lack in demand. evaluating those was not easy as well. oh dear.
    What evaluations did u write for the 12 marker??
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    (Original post by Dilzo999)
    Couldn't have asked for a better exam, even though I was sleep deprived with only achieving 2 hours of sleep, still smacked it after downing a **** ton of caffeine. Here is what I can remember for MCQ answers
    Q1) Backwards vertical
    Q3) Profit satisficing (Only one that made sense really)
    The one about cherry picker was E, AR=MR
    The one about sales maximisation was 4 units
    The one about Oligopoly was I think, where firms were uncertain.
    The one about the monopoly was allocatively efficient
    Q8) A - Government won't need to immediately follow
    And last question I can't remember what it was.


    Yeah I did 10 as well. The only dodgy thing about that question was Q1) the 4 marker. Didn't know what to include from the extract for shutdown point so I just put down random figures about fixed cost, total cost, revenue etc. Hopefully will get 2 marks I believe for definition.
    why was the one about sales maximisation 4 it thought it was 3 and I thought I worked it out correctly??
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    (Original post by rathani278)
    What evaluations did u write for the 12 marker??
    I put for my points 1. increase in costs and 2. decrease in demand, im worried that they'll only accept one as a valid point?? is this what you put aswell?
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    (Original post by rathani278)
    What evaluations did u write for the 12 marker??
    I wrote for points for 9c/ 1. increase in costs and 2. decrease in demand but im worried they'll only accept one as a valid answer?? is this what you did too?
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    (Original post by Lou1095)
    why was the one about sales maximisation 4 it thought it was 3 and I thought I worked it out correctly??
    Dunno, I got that sales maximisation was when AC=AR and that worked out to be 24 for both which was at 4 units . And I remember the final question it was the competition policy one and the answer was I think the market would have been less contestable.
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    (Original post by TheHenri)
    Guess the data response was alright, should be 4/4 8/8 and 16/16 but I found the 12 marker kind of hard. How did you draw your diagram? I did an upward shift of AC so AC>AR forcing firm to leave. But I couldnt understand that part in the extract somehow. So I hope this gives marks. So I put higher costs annually 500,000$ as well as lack in demand. evaluating those was not easy as well. oh dear.
    (Original post by rathani278)
    What evaluations did u write for the 12 marker??
    I think you had to mention the fact that the demand shifts to the left because of the shrinking industry, and something to do with the firm not being able to cover its average variable costs so it can't make a fixed cost contribution, reaching the shut-down point.

    First point evaluation could be magnitude as it doesn't say how much the market actually shrinks by. Second one was a bit more difficult but a rather tenuous point could be that the firm might be cross-subsidising utilising supernormal profits gained outside of the US with their patent, so they could break through to the US, so the shut-down point could be irrelevant.
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    (Original post by 4.2.0)
    I think you had to mention the fact that the demand shifts to the left because of the shrinking industry, and something to do with the firm not being able to cover its average variable costs so it can't make a fixed cost contribution, reaching the shut-down point.

    First point evaluation could be magnitude as it doesn't say how much the market actually shrinks by. Second one was a bit more difficult but a rather tenuous point could be that the firm might be cross-subsidising utilising supernormal profits gained outside of the US with their patent, so they could break through to the US, so the shut-down point could be irrelevant.
    can someone post the answers to the multiple choices , thanks.
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    Hello, for 9 part C I think I did the correct diagram:

    I did a revenue and costs curve with AC above AR to show that the gum firm was not covering it's fixed costs but I drew AVC below the AR to show they were covering their variable costs. However, this was all just predictions as the data didn't really state this was the case. I just drew it anyway to explain a point that if the gum firm felt like they were not making enough contribution to their fixed costs, then they would leave the US market. This is further exemplified as the gum market was shrinking so they would probably not be able to contribute enough to their FC so chose to leave the market.

    Is this okay? I know you could also draw a diagram with AR shifted inwards too.
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    (Original post by 4.2.0)
    I think you had to mention the fact that the demand shifts to the left because of the shrinking industry, and something to do with the firm not being able to cover its average variable costs so it can't make a fixed cost contribution, reaching the shut-down point.

    First point evaluation could be magnitude as it doesn't say how much the market actually shrinks by. Second one was a bit more difficult but a rather tenuous point could be that the firm might be cross-subsidising utilising supernormal profits gained outside of the US with their patent, so they could break through to the US, so the shut-down point could be irrelevant.
    I wrote that it could merge with another manufacturer outside US so that it can lower its average cost and remain in the market. .. is it ok??
 
 
 
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