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

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    How does everyone plan on studying for ECON4? It's definitely my weakest unit by far :/
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    (Original post by AdzyN)
    How does everyone plan on studying for ECON4? It's definitely my weakest unit by far :/
    I agree, there is just so much to learn and I've barely started on it yet!
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    For the final 16 marker on question 9, I put
    - Potential to collude.
    - Advertising
    - Limit pricing/ predatory pricing
    - Sales maximisation.

    Eval.
    - Collusion firms may leave to gain short term benefits. (Payoff matrix)
    - Advertising, sunk costs, used some of my own data.
    - Predatory pricing, illegal face investigation by regulators, lead to fines and bad publicity.
    - Sales maximisation, may lead to price wars, put kinked demand curve in.


    Enough to get 16 you reckon?
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    (Original post by Edmondbeech)
    For the final 16 marker on question 9, I put
    - Potential to collude.
    - Advertising
    - Limit pricing/ predatory pricing
    - Sales maximisation.

    Eval.
    - Collusion firms may leave to gain short term benefits. (Payoff matrix)
    - Advertising, sunk costs, used some of my own data.
    - Predatory pricing, illegal face investigation by regulators, lead to fines and bad publicity.
    - Sales maximisation, may lead to price wars, put kinked demand curve in.


    Enough to get 16 you reckon?
    Yep, 3 or 4 well explained points with 3-4 evaluation points will get you 16 for sure
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    (Original post by jacksonbeach)
    If you put the definition of Oligopoly as a 'market with a few large interdependent firms dominating the market' and forget to mention high entry/exit barriers, will you lose marks?
    Not likely. In all the past papers I've done you only get two marks. ONE for simply identifying it's an oligopoly. ONE for a single characteristic.
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    Q9) 16 marker I put:

    - Predatory Pricing
    - Collusion
    - Takeover/Merger

    Eval
    Both pred pricing and collusion may prompt investigation (illegal), risk etc.
    Difficult to collude due to oligopolistic nature of the market: price war etc.
    Touched on game theory: incentive for one of the colluding firms to report another
    Takeover would be beneficial to the Government: less spending on cleaning the roads. Large firm could use their EoS to furthermore innovate the product and market it. Therefore promoting positive externalities

    Thoughts marks wise?
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    A lot are saying it's forward because in fact the integration was with a firm that specialises in SELLING milk. Therefore producer to seller. Hence forward.
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    (Original post by xphoebeaurora)
    A lot are saying it's forward because in fact the integration was with a firm that specialises in SELLING milk. Therefore producer to seller. Hence forward.
    It was backwards, think of the buying firm as cadburys who use milk to make chocolate, why would cadburies buy a company that specialises in selling milk? They would buy a company that produces milk so they can use it in the process of making their chocolate bars
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    (Original post by alxblazer)
    Q9) 16 marker I put:

    - Predatory Pricing
    - Collusion
    - Takeover/Merger

    Eval
    Both pred pricing and collusion may prompt investigation (illegal), risk etc.
    Difficult to collude due to oligopolistic nature of the market: price war etc.
    Touched on game theory: incentive for one of the colluding firms to report another
    Takeover would be beneficial to the Government: less spending on cleaning the roads. Large firm could use their EoS to furthermore innovate the product and market it. Therefore promoting positive externalities

    Thoughts marks wise?
    Probably around 13-14 out of 16
    You should always try to include 4 KAA points although if you explained each of your 3 points really well then it's possible you got 15-16 marks.
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    (Original post by louisdc)
    Stop crying over 'poor phrasing' of the first question, exams are not meant to be obvious. The question clearly stated that the firm "uses a large amount of milk in its production of dairy produce" (along those lines), suggesting that it was backwards vertical integration.
    In retrospect it was my fault for being complacent on the first question, i didn't think I could possibly get a merger question wrong :P haha
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    q.9 c) about why the firm left the USA
    would it have been correct to say that the average cost went up (quoted £500,000- fixed cost)


    and how many marks would be lost if you were to draw the correct diagram but you didn't shade in the supernormal profit or loss?
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    I was just thinking about the exam and I realised I didn't actually cross the box to say I was doing question 9... do you think that's going to be a problem or will they just figure it out?
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    (Original post by Sarah13579)
    I was just thinking about the exam and I realised I didn't actually cross the box to say I was doing question 9... do you think that's going to be a problem or will they just figure it out?
    I did that too. Many on here said it doesn't matter.
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    (Original post by Alexovic)
    I did that too. Many on here said it doesn't matter.
    Me neither, I always miss it


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    (Original post by xphoebeaurora)
    A lot are saying it's forward because in fact the integration was with a firm that specialises in SELLING milk. Therefore producer to seller. Hence forward.
    The question has stirred up lots of confusion. Poorly worded. I'm fairly certain it said something about "professional milk sellers"
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    (Original post by olly100)
    In retrospect it was my fault for being complacent on the first question, i didn't think I could possibly get a merger question wrong :P haha
    Aghhhh same
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    (Original post by John_Boi)
    Aghhhh same
    It took me time to think about it which meant I ran out of time for data response. I think the hint was where it said 'uses a large amount of milk in production' hence it's a raw material.


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    can som1 kindly link me the unit 4 thread
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    (Original post by Spartz)
    can som1 kindly link me the unit 4 thread
    Edit: Now I know what you meant by "found it" :rofl:
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    (Original post by Spartz)
    can som1 kindly link me the unit 4 thread
    http://www.thestudentroom.co.uk/show...0#post48005610
 
 
 
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