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

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    (Original post by Trust Me I'm Asian)
    What was the actual question that that?
    I actually can't remember (something about why firms don't change their prices), does anyone else on this thread know?
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    (Original post by Trust Me I'm Asian)
    What was the actual question that that?
    it was something about supermarkets all selling bread at the same price and the answer was the action of one will afftect the actions of others as they are interdependant
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    (Original post by T_Mag)
    it was something about supermarkets all selling bread at the same price and the answer was the action of one will afftect the actions of others as they are interdependant
    That's the one! 800g of rice or bread? Definitely put interdependence. Quite confident I got 32/32 in section A
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    How did you guys justify the answer to the profit satisficing question?
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    (Original post by Trust Me I'm Asian)
    That's the one! 800g of rice or bread? Definitely put interdependence. Quite confident I got 32/32 in section A
    yeah the ones i thought i got wrong i seem to have got lucky and got right can anyone remember what question 4 was about though
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    (Original post by T_Mag)
    i looked up the firm in Q1 and they are suppliers of milk the answers must be right

    can you remeber what question 4 was ?
    Yep, Q4 was about the takeover between two soft drink manufacturers, and why it was referred to the Competition Commission (answer was decrease in contestability of the market)
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    (Original post by Layla Gepghry)
    How did you guys justify the answer to the profit satisficing question?
    Definition of profit satisficing, i.e. when a firm makes just enough profit to keep stakeholders happy then allows other motives to take precedence. Shareholders are stakeholders. Short term loss in investment may lead to long-term gain for shareholders in the form of larger dividends.

    K.O mark: Something about short term gain in share price when in reality there would be a fall in share prices due to less profits.
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    Guys mcq1 was forward vertical
    As a manufacturing firm bought selling firm(getting closer to the consumers)

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    (Original post by T_Mag)
    i looked up the firm in Q1 and they are suppliers of milk the answers must be right

    can you remeber what question 4 was ?
    Ahhh yes question 1 is most probably backward vertical but the phrasing was honestly so crap. I'm pretty sure they said something like "pro milk sellers" which made it feel like they'd be able to sell the other company's milk products etc.
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    (Original post by ljh950912)
    Guys mcq1 was forward vertical
    As a manufacturing firm bought selling firm(getting closer to the consumers)

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    No it wasn't. The firm in question used milk as an ingredient, they were buying out a firm that produced and sold milk. Thus as it's in the previous stage of the production process, it's backward-vertical.
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    (Original post by RedDevil014)
    Umm, i drew the AR and MR curve shifting to the left. What about you?
    How did you evaluate this?
    Me too. Forgot to evaluate the diagram


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    (Original post by ljh950912)
    Guys mcq1 was forward vertical
    As a manufacturing firm bought selling firm(getting closer to the consumers)

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    That is exactly what I thought - honestly someone needs to tell edexcel how awfully worded that question was. Usually in past questions it was made clearer e.g. One is a firm that maintains buildings and the other also maintains buildings. So you know to say horizontal integration.
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    (Original post by ljh950912)
    Guys mcq1 was forward vertical
    As a manufacturing firm bought selling firm(getting closer to the consumers)

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    you may be correct however i looked up the firm proper welsh milk and they are a supplier of milk so i think the asnwer was backwards. however the wording of the question was very bad
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    (Original post by ThatGirlYasmin)
    can you get a mark for working out the 5 firm concentration ratio?
    Yup, it was 83%
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    (Original post by DaveJHH)
    Yup, it was 83%
    Also for the question where it asked to draw a cost and revenue diagram what did you do? I shifted the AR and MR to the left because it said the US chewing gum industry was shrinking so I assumed demand would also fall... would I get any marks?
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    (Original post by ThatGirlYasmin)
    Also for the question where it asked to draw a cost and revenue diagram what did you do? I shifted the AR and MR to the left because it said the US chewing gum industry was shrinking so I assumed demand would also fall... would I get any marks?
    Shifting AR and MR while explaining that demand has fallen is correct although I just stated demand had fallen and I drew a diagram with AR less than AC showing a loss made
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    I didn't write enough for the 12 mark question on 10 - I feel like I've failed
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    What happens if you didnt put an x in the box of the question you picked?
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    (Original post by DaveJHH)
    Shifting AR and MR while explaining that demand has fallen is correct although I just stated demand had fallen and I drew a diagram with AR less than AC showing a loss made
    and what about the 16 mark question?

    I spoke about predatory pricing and evaluated it as illegal, limit pricing and used kinked demand theory as evaluation, then spoke about non pricing strategies... advertisement, quality improvement and loyalty schemes and evaluated them as costly and because of interdependence other firms may follow suit and advertise so may not be effective bla bla bla
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    (Original post by garveya)
    What happens if you didnt put an x in the box of the question you picked?
    20 lashes
 
 
 
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