Pride
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#61
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#61
(Original post by SonnyBeatle)
Did anyone else do question 4- I interpreted Segmented markets to mean how the labour market segments based on geographical immobility, occupational immobility, inadequate information (ie a firm that advertises a post only in The Economist will not see non readers apply for the vacancy) and that one of the consequences was wage differentiation. Is this correct or have I just shot myself in the foot? I read through a textbook and I never saw the term "segmented markets" being mentioned.
I mean, that's right, the fact that there's barriers stopping easy movement of labour into different industries, and whether that's a good or bad thing.

But the thing is, why on earth would anybody choose that question, when the others were so blindingly much easier?! The elasticity question and the wage determination question were practically perfect. Many people will have loved the oligopoly one as well.

Why did you give yourself such a hard time? I just don't get it.
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Pride
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#62
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#62
(Original post by dontbtz)
I did the Oligopoly essay question on Cinema and did not use 1 diagram and I'm confident that I didn't need to. Did anybody else do this? I suppose you could have possibly done the kinked demand curve or some average cost curves for the economies of scale part but they show nothing and don't exactly help analysis.
You really should have used the kinked demand diagram, it makes analysis that much easier, simple marks.

You probably said that oligopolies tend to have price rigidity/non-price competition, and that they are interdependent. You can show these things on a kinked demand curve, discussing the extent to which the industry has these characteristics.
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SonnyBeatle
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#63
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(Original post by Pride)
Why did you give yourself such a hard time? I just don't get it.
I did think the other questions seemed easy too, but that one was especially easy for me as I'm very confident talking about market failure and government intervention.
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Benn_95
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#64
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#64
(Original post by SonnyBeatle)
Did anyone else do question 4- I interpreted 2Segmented markets" to mean how the labour market segments due to geographical immobility, occupational immobility, inadequate information (ie a firm that advertises a post only in The Economist will not see non readers apply for the vacancy) and that one of the consequences is wage differentiation. Is this correct or have I just shot myself in the foot? I read through a textbook and I never saw the term "segmented markets" being mentioned.
The main ways the market is segmented is skilled vs unskilled, north vs south and male vs female.

Although you are a bafoon for using that question.


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dontbtz
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#65
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(Original post by JOR2010)
I don't think you had to use the kinked demand curve, it's just another way of showing L3 analysis. Using economic terms is enough, as long as you mentioned concentration ratio, barriers to entry, interdependence or something you'll be fine!
I used lots of economic terminology and I'm confident my theory was bang on. I didn't talk about much interdependence in the cinema industry. More concentration ratio, barriers to entry and non-price competition...
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SonnyBeatle
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#66
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(Original post by Benn_95)
The main ways the market is segmented is skilled vs unskilled, north vs south and male vs female.

Although you are a bafoon for using that question.
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Yeah, I used a worker in Aberdeen (though ironically it's the wealthiest area of Scotland) and a job vacancy in London as examples!! :-)
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Benn_95
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#67
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Hopefully I don't have to resit this! Haha, if I do it clashes with my last Biology module in the summer.


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Pride
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#68
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(Original post by SonnyBeatle)
I did think the other questions seemed easy too, but that one was especially easy for me as I'm very confident talking about market failure and government intervention.
ahh I see what you're saying. I was actually also looking to do a market failure one before the test. But when I saw the wage determination question, I thought it was a bit of no-brainer.
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JOR2010
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#69
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(Original post by dontbtz)
I used lots of economic terminology and I'm confident my theory was bang on. I didn't talk about much interdependence in the cinema industry. More concentration ratio, barriers to entry and non-price competition...
I'm sure you'll be fine! What did everyone put for 'explain the difference between work and leisure' - 3 marks seemed a lot?
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InshAhmad
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#70
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(Original post by FuLLuPMepOrtION)
I thought question 2 was far easier actually! nasty 8 marker. Do you think it would of been of in the contestability question to talk about 1: low barriers to entry and 2: low barriers to exit?????
You can't really talk about them separately, but you could talk about the fact that incumbent and new firms face same costs for B N Bs.
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Benn_95
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#71
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(Original post by JOR2010)
I'm sure you'll be fine! What did everyone put for 'explain the difference between work and leisure' - 3 marks seemed a lot?
Work is time spent in employed labour, whereas leisure is time spent away from work/education and maintenance time where the individual is free to do as they wish.


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JOR2010
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#72
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(Original post by Benn_95)
Work is time spent in employed labour, whereas leisure is time spent away from work/education and maintenance time where the individual is free to do as they wish.


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Did you mention the trade-off between work and leisure? How one is an opportunity cost of the other? I'm not sure what the mark scheme will look for!
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dontbtz
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#73
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(Original post by Pride)
You really should have used the kinked demand diagram, it makes analysis that much easier, simple marks.

You probably said that oligopolies tend to have price rigidity/non-price competition, and that they are interdependent. You can show these things on a kinked demand curve, discussing the extent to which the industry has these characteristics.
I don't think so. It doesn't take a diagram to explain why price rigidity exists. Perhaps if it was a pure economic theory question, I would have used it. In an application to a real-world market it wouldn't benefit you as you can't make it specific to that market. Also, that's just one view of how an oligopoly operates, it's also heavily criticized.
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heirloom
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#74
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#74
(Original post by dontbtz)
I don't think so. It doesn't take a diagram to explain why price rigidity exists. Perhaps if it was a pure economic theory question, I would have used it. In an application to a real-world market it wouldn't benefit you as you can't make it specific to that market. Also, that's just one view of how an oligopoly operates, it's also heavily criticized.
I used the diagram just so that I could criticise it.


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bhogs001
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#75
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#75
1. Difference between work and leisure

Work is gaining income over a period of time whereas leisure is time not spent working. Leisure however doesnt cover maintainance e.g. eating/tyding the house.

So that is 1/3 or 2/3

2. Work out number change

3.48 million

3. Comment on the effects of tourism on the economy. (5)

I wrote, an increase in tourism boosts demand for services and this increases employment. This means the government can spend less on welfare e.g. benefits and therefore there is less AD inflationary pressure. Secondly an increase in tourism means that consumer expenditure is increased which leads to economic growth.

On the other hand, if real incomes fall, this would mean less holidays taken or reduce amount spent on holiday. Therefore expenditure is limited. Lastly, if other countries rely more heavily on tourism, then competition is likely to be fierce. Therefore demand could rise abroad and fall in your country so again there is an economic decline.

4. Two features contestable market

Low barriers to entry - this is because the B+B is a small firm and there are other competitors. (i cant remember what else i wrote)

Hit and run competition - the article mentions that firms used to be B+B's but have changed. So they could have reaped the supernormal profits leaving the B+B with normal profit.

Both are key features of a contestable market

5. Discuss the different objectives.

Big Pit: Utility maximisation because it is promoting education which is a merit good to the consumer. I also said it was a revenue maximiser.

B+B: Main objective was to not lose money i.e. survival

I wrote more but again cant remember


SECTION B QUESTION 3.

This question was a god send to be honest. (PART A)

1. I defined economies of scale (internal and external)
2. Wrote 6 examples of internal relating to cinema
3. Drew diagram
4. Expalined what it showed
5. Wrote 3 examples for external to cinema

(PART B): related to football industry

1. Defined oligopoly
2. Wrote about key features and related them to the top 5 teams i.e. barriers to entry
3. Drew kinked demand curve
4. Using the diagram, i wrote about price rises and price cuts and interdependance within football


5. Explained how football team do not collude due to regulation
6. Expalined about the sunday league teams (greater density)
7. Drew short run and long run monopolistic curves
8. Discussed difference in profits compafre to oligopoly
9. Concluded by saying football is monopolistic competition


Does it sound as if i am on the right track?
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physicshelp123
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#76
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#76
(Original post by bhogs001)
1. Difference between work and leisure

Work is gaining income over a period of time whereas leisure is time not spent working. Leisure however doesnt cover maintainance e.g. eating/tyding the house.

So that is 1/3 or 2/3

2. Work out number change

3.48 million

3. Comment on the effects of tourism on the economy. (5)

I wrote, an increase in tourism boosts demand for services and this increases employment. This means the government can spend less on welfare e.g. benefits and therefore there is less AD inflationary pressure. Secondly an increase in tourism means that consumer expenditure is increased which leads to economic growth.

On the other hand, if real incomes fall, this would mean less holidays taken or reduce amount spent on holiday. Therefore expenditure is limited. Lastly, if other countries rely more heavily on tourism, then competition is likely to be fierce. Therefore demand could rise abroad and fall in your country so again there is an economic decline.

4. Two features contestable market

Low barriers to entry - this is because the B+B is a small firm and there are other competitors. (i cant remember what else i wrote)

Hit and run competition - the article mentions that firms used to be B+B's but have changed. So they could have reaped the supernormal profits leaving the B+B with normal profit.

Both are key features of a contestable market

5. Discuss the different objectives.

Big Pit: Utility maximisation because it is promoting education which is a merit good to the consumer. I also said it was a revenue maximiser.

B+B: Main objective was to not lose money i.e. survival

I wrote more but again cant remember


SECTION B QUESTION 3.

This question was a god send to be honest. (PART A)

1. I defined economies of scale (internal and external)
2. Wrote 6 examples of internal relating to cinema
3. Drew diagram
4. Expalined what it showed
5. Wrote 3 examples for external to cinema

(PART B): related to football industry

1. Defined oligopoly
2. Wrote about key features and related them to the top 5 teams i.e. barriers to entry
3. Drew kinked demand curve
4. Using the diagram, i wrote about price rises and price cuts and interdependance within football


5. Explained how football team do not collude due to regulation
6. Expalined about the sunday league teams (greater density)
7. Drew short run and long run monopolistic curves
8. Discussed difference in profits compafre to oligopoly
9. Concluded by saying football is monopolistic competition


Does it sound as if i am on the right track?
sounds pretty good to me! only issue I can see is the comment question did you use data from the case study as it said 'using information in the case study'?
Can't believe I done essay 4 2 seemed so easy but couldn't remember weather high % of costs meant elastic or Inelastic :/
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bhogs001
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#77
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(Original post by physicshelp123)
sounds pretty good to me! only issue I can see is the comment question did you use data from the case study as it said 'using information in the case study'?
Can't believe I done essay 4 2 seemed so easy but couldn't remember weather high % of costs meant elastic or Inelastic :/
Yes I did sorry I forgot that ahaha

Thanks for reading it! Essay 4 was my next choice. I'm sure you did well though! What did you do for part A considering that is the only bit we can compare?
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JOR2010
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#78
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#78
(Original post by physicshelp123)
sounds pretty good to me! only issue I can see is the comment question did you use data from the case study as it said 'using information in the case study'?
Can't believe I done essay 4 2 seemed so easy but couldn't remember weather high % of costs meant elastic or Inelastic :/
What did you put for the evidence of contestability of the B&B market?
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Pride
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#79
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#79
(Original post by dontbtz)
I don't think so. It doesn't take a diagram to explain why price rigidity exists. Perhaps if it was a pure economic theory question, I would have used it. In an application to a real-world market it wouldn't benefit you as you can't make it specific to that market. Also, that's just one view of how an oligopoly operates, it's also heavily criticized.
I'm just saying that it's the easiest way to get analysis marks, obviously it's a massively simplified model of reality.

(Original post by heirloom)
I used the diagram just so that I could criticise it.
there's an idea

(Original post by physicshelp123)
sounds pretty good to me! only issue I can see is the comment question did you use data from the case study as it said 'using information in the case study'?
Can't believe I done essay 4 2 seemed so easy but couldn't remember weather high % of costs meant elastic or Inelastic :/
Why oh why oh why oh why, did you choose number 4... :laugh:
I looked at it and just thought, there's bound to be people out there giving themselves extra work, when there's 2 godsend essay questions up for grabs.
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JOR2010
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#80
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#80
(Original post by Pride)
I'm just saying that it's the easiest way to get analysis marks, obviously it's a massively simplified model of reality.



there's an idea



Why oh why oh why oh why, did you choose number 4... :laugh:
I looked at it and just thought, there's bound to be people out there giving themselves extra work, when there's 2 godsend essay questions up for grabs.
Did you use the kinked demand curve at all in your argument? I talked about Premier League Football and how top teams have been following each other's price rises, with for example ticket prices. Is this valid?
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