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    I don't agree with a couple answers in the mark scheme.

    MC Q2)

    Which one of the following is most likely to discourage the growth of a firm?
    The existence of:
    A) Disecomies of scale at low levels of Output
    B) Marketing economies of scale at high levels of Output
    C) Large economies of scale at low levels of output
    D) Competing firms in the same industry.

    Unofficial mark scheme says answer is A, but that would ENCOURAGE not discourage growth of a firm.

    I put down C, reason: if there is significant EOS at low output - why would you want to grow?

    I don't agree with D, competing firms in an industry won't stop you from attempting to grow, competing firms will only act as a barrier if you wanted to increase your prices (if you want to follow ECON3 chain of reasoning)

    Q14: I felt it could be B/D but it just felt too dogmatic like a value judgement. I chose be C, as this felt like a safe positive statement that is fact, as the price provides information to producers + consumers.
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    (Original post by Homeboy Hotel)
    I don't agree with a couple answers in the mark scheme.

    MC Q2)

    Which one of the following is most likely to discourage the growth of a firm?
    The existence of:
    A) Disecomies of scale at low levels of Output
    B) Marketing economies of scale at high levels of Output
    C) Large economies of scale at low levels of output
    D) Competing firms in the same industry.

    Unofficial mark scheme says answer is A, but that would ENCOURAGE not discourage growth of a firm.

    I put down C, reason: if there is significant EOS at low output - why would you want to grow?

    I don't agree with D, competing firms in an industry won't stop you from attempting to grow, competing firms will only act as a barrier if you wanted to increase your prices (if you want to follow ECON3 chain of reasoning)

    Q14: I felt it could be B/D but it just felt too dogmatic like a value judgement. I chose be C, as this felt like a safe positive statement that is fact, as the price provides information to producers + consumers.
    Hi, as you grow, you can produce more and so a greater profit and the firm main aim is to make profit, no matter if they are productively efficient. What about monopolies who are not productively efficient who make £50 mil profit compared to a small firm making £1 mil profit, which is productively efficient.
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    (Original post by Hi, How are you ?)
    Hi, as you grow, you can produce more and so a greater profit and the firm main aim is to make profit, no matter if they are productively efficient. What about monopolies who are not productively efficient who make £50 mil profit compared to a small firm making £1 mil profit, which is productively efficient.
    I don't understand - are you asking me or telling me something?! What Q?

    Edit, I suspect you were refering to this part of my post...
    (Original post by Homeboy Hotel)
    I put down C, reason: if there is significant EOS at low output - why would you want to grow?
    That was more of a rhetorical question behind why a firm may not increase output when theres significant EOS at low output
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    So is 14, D then?

    And is 8, B wrong? I put B

    I think I did quite well.

    20 or more for sure! But for the rest of the paper, not sure if I got the full marks for the 5 marker, the 12 marker I drew a shift in the demand curve instead of just along!! So I would have lost a couple of marks there....(context 2). The last part of the paper I did an okay essay, but the conclusion was a little rushed.
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    (Original post by Keyan333)
    So is 14, D then?

    And is 8, B wrong? I put B

    I think I did quite well.

    20 or more for sure! But for the rest of the paper, not sure if I got the full marks for the 5 marker, the 12 marker I drew a shift in the demand curve instead of just along!! So I would have lost a couple of marks there....(context 2). The last part of the paper I did an okay essay, but the conclusion was a little rushed.
    Not sure about 14. I seem to be on my own saying C. Positive > Value statements.
    8 is definitely A. Productively Efficient at AS is defined by producing at lowest point on ATC
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    The answer for 14 is DEFINETELY B

    The Rationing Function is a way to decide who gets what is produced DUE to scarcity. Therefore the answer which fits the best is B as it is a way to 'deter' and stop consuners from devouring thenstick as not everyone can afford it.

    Its not C or D as C mentioned changes in market conditions...well it's not even a change in price....so how?
    D says it makes shortage worse. When did the question mention shortage? If it does make it worse, whats the use thw function? The fundamental use of the R function IS to decide who gets what due to your ability to pay up

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    (Original post by Homeboy Hotel)
    I don't agree with a couple answers in the mark scheme.

    MC Q2)

    Which one of the following is most likely to discourage the growth of a firm?
    The existence of:
    A) Disecomies of scale at low levels of Output
    B) Marketing economies of scale at high levels of Output
    C) Large economies of scale at low levels of output
    D) Competing firms in the same industry.

    Unofficial mark scheme says answer is A, but that would ENCOURAGE not discourage growth of a firm.

    I put down C, reason: if there is significant EOS at low output - why would you want to grow?

    I don't agree with D, competing firms in an industry won't stop you from attempting to grow, competing firms will only act as a barrier if you wanted to increase your prices (if you want to follow ECON3 chain of reasoning)

    Q14: I felt it could be B/D but it just felt too dogmatic like a value judgement. I chose be C, as this felt like a safe positive statement that is fact, as the price provides information to producers + consumers.
    For Q2, It is A- if Diseconomies of scale are bad when you're small, imagine how bad they'd be if you grew? They don't get better at any point, if you keep growing they just get worse. On the other hand, economies if scale DO get better as you grow, up to a point, so if you can get low economies early on, this encourages growth, as it is cheaper and easy to grow and maximise these economies of scale
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    (Original post by Homeboy Hotel)
    I don't understand - are you asking me or telling me something?! What Q?

    Edit, I suspect you were refering to this part of my post...


    That was more of a rhetorical question behind why a firm may not increase output when theres significant EOS at low output
    Nah, I'am trying to say that a firm can make a lot of money even if they are not at EOS.
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    True-but they can make even more money if they are at EOS
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    (Original post by Ben Dodds)
    True-but they can make even more money if they are at EOS
    But the bigger the size of the firm, the more profit they make even if they are not on EOS
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    Hmm...I'm still not sold on Q2
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    I put competition....

    Either way it's only one mark, everyone is getting too hyped about it.
    Just wait for the exam results, all the best everyone.


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    (Original post by Homeboy Hotel)
    Hmm...I'm still not sold on Q2
    If you was to receive large levels of diseconomies of scale at a low output, then that would be a disincentive to carry on production.

    And it's noted that economies of scale occur before diseconomies of scale, therefore the answer's A.
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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
    Good job on the multiple choice, but I do believe you made one mistake.

    Question 19 is supposed to be C, because the opportunity cost of making ONE more car is the same for both, which means one less van.

    There was a past paper that had a question comparing two PPF diagrams, and the answer was Y was greater than X or some sort... You might of got the answer confused with that. But gj on a whole.
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    (Original post by FindBeautyInNegativeSpace)
    Good job on the multiple choice, but I do believe you made one mistake.

    Question 19 is supposed to be C, because the opportunity cost of making ONE more car is the same for both, which means one less van.

    There was a past paper that had a question comparing two PPF diagrams, and the answer was Y was greater than X or some sort... You might of got the answer confused with that. But gj on a whole.
    Weren't the gradients different at different points? Just saying


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    (Original post by Maybach)
    Weren't the gradients different at different points? Just saying


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    Hi, i think the gradients were the same at each point as if you drew lines pointing down from each of the points, and another line at an extra unit, they are the same distance apart and so have the same opportunity cost and so I think the answer was C.
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    (Original post by Hi, How are you ?)
    Hi, i think the gradients were the same at each point as if you drew lines pointing down from each of the points, and another line at an extra unit, they are the same distance apart and so have the same opportunity cost and so I think the answer was C.
    Can't even remember the question.

    Can someone lock this thread??
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    (Original post by FindBeautyInNegativeSpace)
    Good job on the multiple choice, but I do believe you made one mistake.

    Question 19 is supposed to be C, because the opportunity cost of making ONE more car is the same for both, which means one less van.

    There was a past paper that had a question comparing two PPF diagrams, and the answer was Y was greater than X or some sort... You might of got the answer confused with that. But gj on a whole.
    No I'm fairly certain the answer was A, the opportunity cost was greater at X than at Y. Because looking at the diagram if you mark on a one unit increase in cars at each point the gradient at X is less than the gradient at Y so more vans are lost.
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    (Original post by wrobertshaw)
    No I'm fairly certain the answer was A, the opportunity cost was greater at X than at Y. Because looking at the diagram if you mark on a one unit increase in cars at each point the gradient at X is less than the gradient at Y so more vans are lost.
    Yeah I also agree. This is what I mean by different gradients, as it is steeper at different places - thus higher opportunity cost


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    (Original post by Maybach)
    Yeah I also agree. This is what I mean by different gradients, as it is steeper at different places - thus higher opportunity cost
    Yeah thanks, our teacher just taught us to think of it as if you try to make more of one thing eventually it is going to be harder to get the resources to make it, so requires more resources to be taken away from the other product, so hence has a greater opportunity cost.
 
 
 
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