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    Right, so this is my UNOFFICIAL MARK SCHEME. If you think I got anything wrong, don't hesitate, and correct me.

    1. B
    2. A
    3. B
    4. B
    5. A
    6. D
    7. D
    8. A
    9. C
    10. B
    11. A
    12. A
    13. D
    14. B
    15. B
    16. D
    17. A
    18. A
    19. B
    20. D
    21. B
    22. C
    23. C
    24. B
    25. A
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    Also, for the 5mark question, for the Marginal Private Cost I put: "Costs that are borne solely by the individual (1st Party) who creates them". I don't think that's 100% right, but how many marks do you think I'd get for it?
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    (Original post by KiMika)
    Right, so this is my UNOFFICIAL MARK SCHEME. If you think I got anything wrong, don't hesitate, and correct me.

    1. B
    2. A
    3. B
    4. B
    5. A
    6. D
    7. D
    8. A
    9. C
    10. B
    11. A
    12. A
    13. D
    14. B
    15. B
    16. D
    17. A
    18. A
    19. B
    20. D
    21. B
    22. C
    23. C
    24. B
    25. A
    Explain your choice for 14, I got D?
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    Hi guys, I'm making a YouTube series for model answers to the Jan 2013 paper! Here is my first one on Marginal Private cost:
    EDIT: I did this video wrong, I'll reupload soon, check out my youtube channel when I release the new one.
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    (Original post by Koolio)
    Explain your choice for 14, I got D?
    a rise in price will push customers away so the shortage won't be made worse
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    (Original post by Koolio)
    Explain your choice for 14, I got D?
    Shortage means a decrease in supply, therefore supply curve shifts to the left. There will be excess demand at the initial price, which is then removed by an increase in price, as the price mechanism performs it's RATIONING and signalling functions, which means the demand curve contracts, and quantity falls, so it's B.
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    Having just looked at 14, I too would have put B. If the price goes up, less people buy it as they can't afford.
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    Alex Torres, can you go through the Multiple Choice answers?
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    (Original post by KiMika)
    Right, so this is my UNOFFICIAL MARK SCHEME. If you think I got anything wrong, don't hesitate, and correct me.

    1. B
    2. A
    3. B
    4. B
    5. A
    6. D
    7. D
    8. A
    9. C
    10. B
    11. A
    12. A
    13. D
    14. B
    15. B
    16. D
    17. A
    18. A
    19. B
    20. D
    21. B
    22. C
    23. C
    24. B
    25. A
    I think that 11 is B and I'm not too sure but I thought that 19 was A. also, how did you work out 20? that one threw me
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    (Original post by KiMika)
    Alex Torres, can you go through the Multiple Choice answers?
    I don't think I'm confident enough to confirm I'd get them all right though, they can be quite ambiguous
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    11 was A, because demerit good produces negative externalities, so MSC>MPC
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    I thought 2 was D
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    2 was quite weird, I don't actually remember what I put exactly
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    I would have written D for 2. Competition drives prices lower, and therefore doesn't allow much growth. But I'm not sure
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    Ok so according to that mark scheme I got 21 I think, but I'm pretty sure 2 was D so...
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    As I said, this mark scheme is UNOFFICIAL, they were the answers that I put down, so there can be mistakes of course
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    (Original post by Alex-Torres)
    I would have written D for 2. Competition drives prices lower, and therefore doesn't allow much growth. But I'm not sure
    Hi, I was thinking that if there was DES at low output, the firm would expand to get EC , but the q asks what would prevent a firm from expanding.
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    Yh D does make sense but why can't it be c , as lower output is associated with smAller firms hence shouldn't they want too stay small to get economies is scale??? - confused
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    (Original post by KiMika)
    11 was A, because demerit good produces negative externalities, so MSC>MPC
    but this is the diagram for a demerit good http://www.chrisrodda.com/ASMicroeco...es/demerit.png
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    (Original post by JackersAFC)
    but this is the diagram for a demerit good http://www.chrisrodda.com/ASMicroeco...es/demerit.png
    Sorry, but that's wrong, I'd say that would be a diagram for a merit good, but even that's wrong, because it shows that the MPB is greater than the MSB which just doesn't make sense, as with a merit good MPB<MSB

    As for the demerit good, MSC ALWAYS exceeds MPC, because they deemed to produce negative externalities.
 
 
 
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