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bedrazor666
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#2301
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#2301
Hey guys, I've been stuck on this one question and would really appreciate some help!

This is a 3rd year uni question just to inform you. Any kind of help is much appreciated!

Question 4
Please answer the following questions. Make sure that you explain all the steps of your analysis and that you define any new notation that you use.
The Coca-Cola Company has outsourced the bottling of its soft drinks from the very start of the company. They even sold the right to bottle Coca-Cola to other firms. Some of these bottlers have exclusive territories in which they bottle, distribute and merchandise Coca-Cola. Coca-Cola Enterprises is one of them (independent of Coca-Cola Company) and they have the exclusive right to market, produce and distribute Coca-Cola in the U.K. Let the inverse demand for Coca-Cola in the U.K. be P = 10,000 – Q, where Q denotes the amount of Coca- Cola sold in the U.K.
The bottler’s marginal cost of bottling Coca-Cola is a constant denoted by b, the marginal cost of distributing Coca-Cola is a constant denoted by d, and the fixed amount they spend on marketing each year is denoted by M, where 1000 > M > 1. The Coca-Cola Company incurs marginal costs of producing the syrup, which are denoted by c. The Coca-Cola Company then sells the syrup to its bottlers (among them Coca-Cola Enterprises) for a price w and the bottlers then charge the price P to the retailers. Both the Coca-Cola Company and the Coca-Cola Enterprises are profit-maximisers.
Assume that a, b, c, d > 0 and (b + d + c) < 10,000.
a) Suppose Coca-Cola Enterprises is free to choose P, and Coca-Cola Company chooses w. Find expressions for the optimal levels of P* and w*.
(8 marks)
b) Now suppose that resale price restrictions could be enforced legally, so that Coca-Cola Company chooses the prices w and P. Let w’ and P’ denote the equilibrium prices. Find an expression for P’. Will P’ be greater than or less than P*?
(11 marks)
c) Does making maximum resale prices illegal per se improve welfare (in the sense of consumer plus producer surplus)? Please answer the question with “yes” or “no” and give an explanation for your answer in 100 words maximum.
(6 marks) (Total 25 Marks)
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falcon pluse
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#2302
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#2302
i've been stuck on deflation

1)How does a period of prolonged deflation effect exports?

do they make them more internally price competitive or worse ( as they increase the value of the exchange rate or does it?)

2)does deflation increase the value of the pound exchange rate and if so how?

Edit: MINES NOT AN ESSAY QUESTION , I JUST NEED TO KNOW!!!
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ThisIsMyUser
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#2303
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#2303
1) Evaluate the likely effects on the UK's current account of the balance of payments of changes in consumption, Investment and the exchange rate of the pound (sterling). (30)
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alex_hk90
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#2304
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#2304
(Original post by bedrazor666)
Hey guys, I've been stuck on this one question and would really appreciate some help!

This is a 3rd year uni question just to inform you. Any kind of help is much appreciated!

Question 4
Please answer the following questions. Make sure that you explain all the steps of your analysis and that you define any new notation that you use.
The Coca-Cola Company has outsourced the bottling of its soft drinks from the very start of the company. They even sold the right to bottle Coca-Cola to other firms. Some of these bottlers have exclusive territories in which they bottle, distribute and merchandise Coca-Cola. Coca-Cola Enterprises is one of them (independent of Coca-Cola Company) and they have the exclusive right to market, produce and distribute Coca-Cola in the U.K. Let the inverse demand for Coca-Cola in the U.K. be P = 10,000 – Q, where Q denotes the amount of Coca- Cola sold in the U.K.
The bottler’s marginal cost of bottling Coca-Cola is a constant denoted by b, the marginal cost of distributing Coca-Cola is a constant denoted by d, and the fixed amount they spend on marketing each year is denoted by M, where 1000 > M > 1. The Coca-Cola Company incurs marginal costs of producing the syrup, which are denoted by c. The Coca-Cola Company then sells the syrup to its bottlers (among them Coca-Cola Enterprises) for a price w and the bottlers then charge the price P to the retailers. Both the Coca-Cola Company and the Coca-Cola Enterprises are profit-maximisers.
Assume that a, b, c, d > 0 and (b + d + c) < 10,000.
a) Suppose Coca-Cola Enterprises is free to choose P, and Coca-Cola Company chooses w. Find expressions for the optimal levels of P* and w*.
(8 marks)
b) Now suppose that resale price restrictions could be enforced legally, so that Coca-Cola Company chooses the prices w and P. Let w’ and P’ denote the equilibrium prices. Find an expression for P’. Will P’ be greater than or less than P*?
(11 marks)
c) Does making maximum resale prices illegal per se improve welfare (in the sense of consumer plus producer surplus)? Please answer the question with “yes” or “no” and give an explanation for your answer in 100 words maximum.
(6 marks) (Total 25 Marks)
How far have you got? Have you managed to set up the producer problems for Coca-Cola Enterprises and the Coca-Cola Company? (a) should be a simple constrained optimisation once you've set up the problem. (b) should be a constrained optimisation where Coca-Cola company chooses both variables. Then (c) should essentially be comparing these two situations. Which part are you stuck on?
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Hwee Ling
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#2305
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#2305
I will be doing an essay question extracted from the past paper
ON Globalisation and Global recession tmrw for my unit 4 -edexcel. (my teacher just informed me today)
but my MACROECONOMICS is so weak. and tonight i will be revising for globalisation becuase that seems to be the main topic but with the global RECESSION. what should i revise ?? i dont even know how to revise for global recession!
prove how weak my macroeconomics is - i got a grade U - 33% FOR MY UNIT 2 .and i am doing this resit within 3 weeks and i havent started my revision.
can i get some help here please?

and i will also be doing a unit 3-business economics mock tmrw and i keep on failing in class for my economics :'( help help help.. 3 weeks to my unit 2 and i havent started proper revision. is this possible?
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Dave129
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#2306
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#2306
It is said that the Washington Consensus didn't deliver the welfare improvements it could have done due to countries lacking institutional infrastructure.

Can someone please give me some examples and how this meant that "market fundamentalism" didn't provide the welfare improvements it ought to have done?
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mathflair
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#2307
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#2307
Can someone explain Q27 of this paper: http://www.xtremepapers.com/papers/C..._w11_qp_12.pdf ?
Why is the correct option D rather than C?
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falcon pluse
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#2308
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#2308
(Original post by mathflair)
Can someone explain Q27 of this paper: http://www.xtremepapers.com/papers/C..._w11_qp_12.pdf ?
Why is the correct option D rather than C?
Because an increase in foreign assets will result in net investment income ( you may know it as net income flows ) for a country

Net income flows/investment income depending on which you know it as, is a component of the balance of payments current account.

For example, Apple owns a factory in China , this make profits and brings money in the UK. This flow of net income makes up the current account.
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falcon pluse
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#2309
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#2309
Looking at the european union , there is a lot of talk about monetary union. I'm a bit confused what does this mean who/how its implemented.

Does monetary union mean that the ECB control interest rates and dictates/ enforces fiscal rules. Or do they only control interest rates

confused!!
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hafsah1010
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#2310
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#2310
Could someone please tackle this Q for me, I'd really appreciate it!

To what extent do the benefits of high inflation in China outweigh the costs?
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throwdown1212
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#2311
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#2311
ediy
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mathflair
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#2312
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(Original post by falcon pluse)
Because an increase in foreign assets will result in net investment income ( you may know it as net income flows ) for a country

Net income flows/investment income depending on which you know it as, is a component of the balance of payments current account.

For example, Apple owns a factory in China , this make profits and brings money in the UK. This flow of net income makes up the current account.
How come it's NOT C? Why isn't is necessary that foreign currency reserves pile up? I thought that always happens in case of a surplus.
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falcon pluse
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(Original post by mathflair)
How come it's NOT C? Why isn't is necessary that foreign currency reserves pile up? I thought that always happens in case of a surplus.
Yes it may increase, but you could be in a deficit still , you wouldn't know. They key thing about it being D is the fact that from the word net , we can infer we have more assests abroad would generate more income.

Im only doing A level economics , but im pretty sure you can aquire foreign reserve by other means than just exports. It may increase due to a surplus , but the extent of its increase may have been due to other factors, whereas an increase in holding of foreign assests is diretly ( without a doubt) a component of the current account,
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JenniferASDJCVDG
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Wondering if anyone can explain this section of the OCR A2 pre-release (extract 2) to me please?
"China's economy is unbalanced. Although investment is high, savings are higher still. The result is an economy driven by external rather than domestic deman, resulting in a large current account surplus."
I don't understand why excess savings leads to a large current account surplus. Is it because it means consumption is low so growth must be export-led? Or is it something to do with the excess savings being invested abroad and the returns on those savings benefitting the current account?
Thanks for any help
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SEM94
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#2315
I'm having trouble understanding what a 'loss of exchange rate flexibility against other countries which have adopted the Euro' means when revising the disadvantages of joining a monetary union such as the Eurozone. Could anybody help me out? Thanks
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MeAndBubbles
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#2316
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(Original post by hafsah1010)
Could someone please tackle this Q for me, I'd really appreciate it!

To what extent do the benefits of high inflation in China outweigh the costs?
You'd have to bring up the subject of the Philips Curve, argue to what exent it's a valid theory, and if the costs are higher unemployment, are there other benefits for efficiency, the distribution of wealth effects, or growth in GDP. Firms might be willing to invest is they see higher prices.
That's all I can think of.
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Mouth
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#2317
I was getting a little confused with this in class (and can't remember exact question) but can anyone give some help?

It was 'What are the macroeconomic effects of inaccurate measures of GDP growth'

So if GDP figure was lower than actual growth this would mean that....
Thanks for any help!
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Cozmo-Phoenix
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Hey there everyone. I am a university student in the Philippines. I am currently studying AB Economics in the University of Santo Tomas. I just want to ask, what's the difference between AB Economics and BS Economics? Thanks for any help.
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iMe
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(Original post by Cozmo-Phoenix)
Hey there everyone. I am a university student in the Philippines. I am currently studying AB Economics in the University of Santo Tomas. I just want to ask, what's the difference between AB Economics and BS Economics? Thanks for any help.
There isn't really much difference now. AB or BA is a Bachelor of Arts, whereas BS or BSc is a Bachelor of Science. Historically, BA was given to people doing arts and humanities, and BS was given to people doing sciences and maths, but over time the difference has narrowed. From what I've seen, the level of maths within an economics course may have some impact on whether it's classed as AB/BA or BS/BSc, though it's by no means universal and you need not be concerned whether or not your degree is awarded AB or BS.

Some say BS is harder. Some say it's not.
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Hwee Ling
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#2320
i am suck with these essays:

can i get some help/ have some discussion on these essay questions

1)Assess the extent to which a sharp depreciation of the pound will improve the UK current account of balance of payments. (12 marks)

2)Discuss the fiscal and supply side policies the UK Governemtn could persue to reduce the rate of unemployment. (30 marks!)

3)Using AD and AS analysis, explain the likely impact on the equilibrium price levele and level of real output in the UK of the "sharp increase in oil prices" (10 marks!)

Question. how would you guys write the essay to achieve the marks !!?


Best wishes.
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