Hey there! Sign in to join this conversationNew here? Join for free
    Offline

    2
    ReputationRep:
    (Original post by SilverHorsey)
    thanks a lot again!#

    so just to sum up, the only time id need to draw graphs are for changes in the NMW (then use increase in demand graph/mrp/monopsonist/bilateral monopoly graphs) and then also for wage rate changes (2 graphs: unemployment increase, and elasticity graph)?

    if so, think ill start revising now i know what to do
    no problem, just help someone when they need it in the future haha. yes draw graphs where you think it is necessary, do not bombard graphs everywhere because you need to explain it as well! and do not repeat your points! good luck
    Offline

    13
    ReputationRep:
    (Original post by kamez)
    Using a leisure market of your choice, discuss theextent to which it may be considered to be an oligopoly.

    An oligopoly market is one dominated by a few firms whohave a significantly high concentration ratio i.e. a highproportion of the total market share lies in the hands of justa handful of firms. In the case of Premiership football the topfour teams that regularly appear to dominate the league,Manchester United, Liverpool, Arsenal and Chelsea maywell be considered to fit this description. Between them theycertainly have a significant share of the total revenueearned in the UK market, and each of them regularly appearin the top 10 money earning clubs in the world. They eachprovide a product that is in many senses generic, yet is soheavily branded it clearly provides evidence that significantnon-price competition exists between the businesses. Thisis probably more important in the worldwide market forPremier League merchandise, replica shirts etc, than athome where partisan allegiances might play a moresignificant part. Barriers to entry into this top echelon mayalso be said to exist as continued success in the top divisionof the English league yields handsome financial rewards.


    These payments represent a significant proportion of themoney television stations around the world pay to theFootball Association who manages the league. This allowsthese top teams to buy the services of the best players,denying them to other teams, and consequentlyperpetuating their dominance. Year on year these top fourthen qualify for the equally lucrative European championsleague, which becomes increasingly inaccessible to the restof the clubs in the league and once again the barriers toentry grow. Surely the case for considering Premiershipfootball as an oligopoly market has solid foundations. Thetop 4 are the biggest earners repeatedly and the mostsuccessful on the field.On the other hand there are 16 other teams in the divisionwho could grow their businesses through success on andoff the field. Also each year due to promotion and relegation3 new teams join the league and 3 exit; consequently thereis the potential for change to occur especially over a numberof years. The rise and fall of Wimbledon FC being anexaggerated example of the potential to break throughperceived barriers. Certainly there is no convincingevidence that any of the top 4 clubs are making abnormalprofits as the Chelsea FC final accounts of the last couple ofseasons will testify. The apparent willingness of clubs toimmediately re-invest funds into playing staff purchase andsalaries is testament to the rejection of the idea that profitmaximisation is the main goal of these top clubs. Thirdly, inrecent times, there is evidence that price competition isbeginning to enter the market, with discount tickets on offerat an increasing number of Premiership grounds. Admittedlythese are less apparent at the homes of the top 4 teams buteven there signs are that to attract support to matchesagainst less popular opposition, lower ticket prices are onoffer.To conclude we have conflicting evidence as to the extent towhich Premiership football has become an oligopoly market.


    In theory with sporting success any team could rise up theleague and challenge the top 4 clubs. The changingeconomic climate of the present time may even lend itselfmore favourably to such an occurrence. However, the hardevidence would appear to support the view that the marketis increasingly dominated by the top 4 clubs. Only oncesince the 1992/93 season has the league been won by ateam outside the top 4 clubs, indeed since the 2000/2001season only once has a team from outside finished in thetop three places, Newcastle in the 02/03 season. This surelyillustrates the increasing stranglehold this oligopoly hasgained on the market. They have secured financialdominance and won support on the world stage due to thehighly successful marketing of the league. Abnormal profitsare not necessarily in evidence, but that could just be due tothe curious nature of the product and the apparentreluctance of the owners of these clubs to follow theirnatural entrepreneurial instincts when it comes tomaximising profits. In football the top 4 are getting richerand more dominant in terms of success at the game, if notin terms of profitability, due to their reluctance to take cost ofproduction seriously.


    a marking scheme answer for a few years ago so i doubt this will come up but as people predicted it, i decided to share!
    Thanks for this, it's really helpful

    Posted from TSR Mobile
    Offline

    2
    ReputationRep:
    Guys i am confused:

    Low productivity leads to lower MRP and hence lower demand and therefore lower wages. But low skilled jobs also attract many workers as the qualifications required are low and supply is high and wages are low.

    So are both arguments correct?
    Offline

    8
    ReputationRep:
    (Original post by flairs)
    Guys i am confused:

    Low productivity leads to lower MRP and hence lower demand and therefore lower wages. But low skilled jobs also attract many workers as the qualifications required are low and supply is high and wages are low.

    So are both arguments correct?
    Low productivity is a demand factor and skills is a supply factor. Different reasons, different explanations for a fall in wages. Low skills could also explain why supply of unskilled labour is elastic.
    Offline

    3
    ReputationRep:
    What is the difference between collective and local bargaining?
    Online

    17
    ReputationRep:
    (Original post by Marshmallow21)
    What is the difference between collective and local bargaining?
    Collective usually cover an entire industry e.g. Doctor strikes and local agreements are between a single employer and his employees (company either than industry).
    Offline

    1
    ReputationRep:
    How can you write a good judgement?
    Offline

    13
    ReputationRep:
    (Original post by Todd199)
    How can you write a good judgement?
    You have to explicitly answer the question, by weighing up your argument and writing things like 'the extent to which blah blah blah leads to blah blah blah depends on...'

    Posted from TSR Mobile
    Offline

    1
    ReputationRep:
    Hi, can someone please post examples for the labour market. I have some for leisure industries, but I have none
    !!!!!!!
    As in so I have examples for the 15/20 markers if they ask for examples..THANKKS
    Offline

    3
    ReputationRep:
    What are the effects of regulation on the leisure market
    Offline

    2
    ReputationRep:
    Can someone tell me how you define the short run and long run factors of production question?
    Offline

    13
    ReputationRep:
    (Original post by pic)
    Hi, can someone please post examples for the labour market. I have some for leisure industries, but I have none
    !!!!!!!
    As in so I have examples for the 15/20 markers if they ask for examples..THANKKS
    For elasticities and what not?

    You could compare surgeons (inelastic supply and demand) with waitresses (elastic supply and demand)

    For segmented labour markets
    Some barriers to entry are good, don't want to be operated on by a surgeon who lacks the qualifications or get into a taxi where the taxi driver doesn't have a license

    For a perfectly competitive wage market and how it is able to equalise wages: mention how with a completely flexible market, if the wages of pilots are higher than brick layers, then more brick layers will become pilots thus equalising the wage (thus obviously assumes labour is homogeneous)

    You don't need numerical examples for the labour market, just things like I've mentioned plus more

    Posted from TSR Mobile
    Offline

    1
    ReputationRep:
    (Original post by Lostrider)
    For elasticities and what not?

    You could compare surgeons (inelastic supply and demand) with waitresses (elastic supply and demand)

    For segmented labour markets
    Some barriers to entry are good, don't want to be operated on by a surgeon who lacks the qualifications or get into a taxi where the taxi driver doesn't have a license

    For a perfectly competitive wage market and how it is able to equalise wages: mention how with a completely flexible market, if the wages of pilots are higher than brick layers, then more brick layers will become pilots thus equalising the wage (thus obviously assumes labour is homogeneous)

    You don't need numerical examples for the labour market, just things like I've mentioned plus more

    Posted from TSR Mobile
    Thanks but I meant for trade unions really? Anything on that thanks a lot
    Offline

    13
    ReputationRep:
    (Original post by MrCoolVille)
    Can someone tell me how you define the short run and long run factors of production question?
    Short run: at least one factor of production in fixed supply, usually capital. For this you'd mention law of diminish marginal returns. Could drop the diagram that has MC, A FC, ATC, AVC curves.

    Long run: All factors of production variable. So the scale of production can increase or decrease. Draw the diagram that shows LRAC as a U shaped curve. As state the minimum point on the curve is optimum size, after economies of scale has set in and before diseconomies of scale sets in

    Posted from TSR Mobile
    Offline

    13
    ReputationRep:
    (Original post by Marshmallow21)
    What are the effects of regulation on the leisure market
    Do you mean legislation against trade unions and employers?

    Regulation can be used to diminish the bargaining power of either TU or employers.

    E.g. In the UK there's lots of legislation against TU weakening their market power, this includes that there needs to be secret ballots to vote for strikes and at least 75% of union members have to agree to strike before they can have a legal strike.

    The effect of regulation is to sort out the market failure caused by high unemployment, then there needs to be. I.e. to sort out surplus of supply of labour over demand for labour

    EDIT: damn I misread our question cause I am stressing out. Sorry :facepalm:

    Posted from TSR Mobile
    Offline

    13
    ReputationRep:
    (Original post by pic)
    Thanks but I meant for trade unions really? Anything on that thanks a lot
    Oh right sorry,

    Regulation against TUs?
    They need to have secret ballots before striking
    75% of union members need to agree to the strike, otherwise it's illegal
    They're only allowed to strike against their own employer
    Offline

    2
    ReputationRep:
    worst exam ever award goes to: OCR F583 Economics *applause*
    Offline

    0
    ReputationRep:
    I have a bad feeling about that exam, and it's worse because the exam was actually quite easy, and i fear that there will be high grade boundaries. i screwed up
    what points did you all write discussing the extent to which a broadcasting market is a monopoly?
    Offline

    0
    ReputationRep:
    the most difficult economics exam of all time
    Offline

    2
    ReputationRep:
    im logging off this rubbish cos when people say its so easy it just rubs my nose in it cba
 
 
 
  • See more of what you like on The Student Room

    You can personalise what you see on TSR. Tell us a little about yourself to get started.

  • Poll
    What's your favourite Christmas sweets?
  • See more of what you like on The Student Room

    You can personalise what you see on TSR. Tell us a little about yourself to get started.

  • The Student Room, Get Revising and Marked by Teachers are trading names of The Student Room Group Ltd.

    Register Number: 04666380 (England and Wales), VAT No. 806 8067 22 Registered Office: International House, Queens Road, Brighton, BN1 3XE

    Quick reply
    Reputation gems: You get these gems as you gain rep from other members for making good contributions and giving helpful advice.