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    At least it's an afternoon exam :/
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    (Original post by HCLx)
    firstly PD can be done because of differing elasticities of demand - lunch time = inelastic (fewer alternatives etc) and afternoon is elastic (more time etc)

    The coffee shop will make more revenue by price discriminating because the inelastic demand will see an increase in revenue which makes up for not making as much in say the afternoon when demand is elastic (the idea that they could potentially make a loss without the lunchtime surplus is the influence of the pricing strategy)

    in terms of costs, price discrimination allows a firm to spread costs more evenly among consumers because output would be higher and less waste is produced e.g. they would have to chuck away coffee if elastic group were charged high prices because they have no reason to pay (alternatives etc)

    hope that helps!
    yeah the first bit makes sense ubt the mark sceheme used an example of workers:
    The café has large fixed costs, eg staff (1 mark) and therefore there are times of day when it works to full capacity (1 mark) and others where it is under capacity (1 mark). It therefore needs to spread costs more evenly (1 mark) and then if it can maximise TR (1 mark) it will also maximise profit (1 mark). Revenue is increased by increasing price when p.e.d is inelastic (1 mark) and reducing price when demand is elastic (1 mark). In some ways this is a similar pricing strategy to that of the low cost airlines (1 mark).
    - but what has the fixed costs to do with the capacity? :/
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    Why do people want cost benefit analysis to come up? There is nothing to even say about it.
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    (Original post by IhateAlevels123)
    Why do people want cost benefit analysis to come up? There is nothing to even say about it.
    If you learn it once you learn it fall all years, it never changes.
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    (Original post by Paddyyyy)
    At least it's an afternoon exam :/
    really i thought it was at 8am
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    (Original post by thatapanydude)
    really i thought it was at 8am
    13:15
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    What would be some points about the effect of divorce of ownership from control on conduct and performance?
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    (Original post by Kitkat5)
    yeah the first bit makes sense ubt the mark sceheme used an example of workers:
    The café has large fixed costs, eg staff (1 mark) and therefore there are times of day when it works to full capacity (1 mark) and others where it is under capacity (1 mark). It therefore needs to spread costs more evenly (1 mark) and then if it can maximise TR (1 mark) it will also maximise profit (1 mark). Revenue is increased by increasing price when p.e.d is inelastic (1 mark) and reducing price when demand is elastic (1 mark). In some ways this is a similar pricing strategy to that of the low cost airlines (1 mark).
    - but what has the fixed costs to do with the capacity? :/
    it mentions capacity as in utilising the coffee shop - how many people using the coffee shop

    so like at lunch time a cafe might have all the tables filled and being used

    after lunch and mid morning they may have spare tables - wasted resources and not being used to capacity

    (i think)

    i genuinely hate the 10/15 mark questions i feel like you need more common sense than actual economic knowledge it makes me so angry (i'm not saying you don't have it by the way) hahah it's just confusing
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    (Original post by HCLx)
    it mentions capacity as in utilising the coffee shop - how many people using the coffee shop

    so like at lunch time a cafe might have all the tables filled and being used

    after lunch and mid morning they may have spare tables - wasted resources and not being used to capacity

    (i think)

    i genuinely hate the 10/15 mark questions i feel like you need more common sense than actual economic knowledge it makes me so angry (i'm not saying you don't have it by the way) hahah it's just confusing
    oooh okay, thank you so much >.< , i basically don't have common sense though to be honest hahaha, yeah my teacher said it's about 'logical chains of reasoning' so you just have to break everything down step by step which is annoying! I totally forgot about 10/15markers and have just been loooking at 25marks until now . How are you revising for it?
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    (Original post by Kitkat5)
    oooh okay, thank you so much >.< , i basically don't have common sense though to be honest hahaha, yeah my teacher said it's about 'logical chains of reasoning' so you just have to break everything down step by step which is annoying! I totally forgot about 10/15markers and have just been loooking at 25marks until now . How are you revising for it?
    Yeah I guess that correct, my chains never seem to be logical haha woops.
    For 25 markers you just gotta learn evaluative points for basically EVERYTHING and just reading thought the mark schemes now at answers, too late to be attempting them now I guess plus they're impossible to mark

    For the 15/10 marker's I am just trying to learn all the tiny and complex details of the topics because they seem to ask such niche things but I have no idea how else to do it unless you have any tips ?
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    Who feels confident for this exam ? I'm really worried because I HAVE to get A's 😫😭😭😭😭😭😭😭 😭😭

    Otherwise I ain't going to uni 😐

    I really hope why're nice tomorrow


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    Last years paper was pretty bad so let's hope for generous questions.
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    (Original post by HCLx)
    Yeah I guess that correct, my chains never seem to be logical haha woops.
    For 25 markers you just gotta learn evaluative points for basically EVERYTHING and just reading thought the mark schemes now at answers, too late to be attempting them now I guess plus they're impossible to mark

    For the 15/10 marker's I am just trying to learn all the tiny and complex details of the topics because they seem to ask such niche things but I have no idea how else to do it unless you have any tips ?
    loool honestly, i'm just trying to cram right now, I got a C last year, resitting this year and have been trying to aim for 100% buti'm literally praying for God's favour on these economics exams
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    Evaluate the view that competition policy is never necessary because, in the long run,market forces will ensure that monopolies cannot abuse their power and will not last.

    how can market forces stop monopolies abusing their power though?
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    (Original post by Kitkat5)
    Evaluate the view that competition policy is never necessary because, in the long run,market forces will ensure that monopolies cannot abuse their power and will not last.

    how can market forces stop monopolies abusing their power though?
    Read about 'creative destruction'
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    (Original post by Kitkat5)
    loool honestly, i'm just trying to cram right now, I got a C last year, resitting this year and have been trying to aim for 100% buti'm literally praying for God's favour on these economics exams
    Hey does that mean you resitting ECON3 and ECON4?
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    (Original post by Paddyyyy)
    Read about 'creative destruction'
    what's/where's that from?
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    nooo as in i resat econ2 and econ1 sorry lol , i'm in year 13
    (Original post by naomi288)
    Hey does that mean you resitting ECON3 and ECON4?
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    (Original post by Kitkat5)
    what's/where's that from?
    The process by which inefficient firms - monopolies being productively inefficient (X-inefficient) and allocatively inefficient - will be replaced by more efficient firms

    Coined by Joseph Schumpeter
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    Okay in my revision guide it says that for 3rd degree price discrimination, there's an assumption that there are no economies of scale- but places like trains etc which 3rd degree price discriminate with off peak etc have large economies of scale don't they?

    what do they ever ACTUALLY mean when they say you 'assume' there's not economies of scale
 
 
 
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