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AQA Unit 3 Economics ECON 3 4th June 2013

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Reply 60
Original post by nadster
Lol so you're suggesting that you revise one or the other? VERY risky, like you said :P


Because theres always a question on either the risk is if theres a really hard question

Its possible but I did say its a risk

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Reply 61
Original post by qr95
I wouldn't advice anyone to do this as its very risky but you could get away learning either theory of a firm or labour markets


Couldn't be more wrong, different theories of the firm are perfect for evaluation
Reply 62
Original post by havana-affair
Can anyone explain the difference between returns to scale and economies of scale? They both occur in the long run. Am I correct in saying that the long run (AC) cost curves shape is due to economies of scale?


Exactly the same thing, Increasing returns to scale means economies of scale and decreasing returns to scale means dis-economies of scale. LONG RUN
Reply 63
Original post by nadster
Hmmm perhaps it has something to do with the conflict between the two? Like in order to achieve economies of scale, a firm must first face diminishing returns maybe? The law of diminishing returns encourages firms not to employ more than a certain value of a variable factor, but if a firm operates at a level of output well below capacity then the firm will be operating inefficiently and AC will be high. In order to reduce AC, therefore, and to maximise economies of scale, a firm must first face decreasing returns to scale. Just an idea, I'm not sure whether it's right


Returns to Scale is always Long run, Diminishing Returns is Short run (If this confuses you check definitions of SR and LR)
Increasing returns to scale occur when the percentage change in output is greater than the percentage change in inputs therefore economies of scale have occurred.
Decreasing is where Percentage change in output is less than percentage change in input therefore dis-economies of scale
Reply 64
Original post by Axion
why is no-one learning labour markets? Its a pretty big topic and if it comes up as one of the contexts....


It is indeed one of the biggest, would certainly disagree with anyone recommending not revising the section, there really isn't a lot to it .. More than happy to answer any urgent questions people have on the section
Reply 65
Original post by Ecomax
Couldn't be more wrong, different theories of the firm are perfect for evaluation


What has that got to do with what I said

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Reply 66
Original post by Ecomax
Returns to Scale is always Long run, Diminishing Returns is Short run (If this confuses you check definitions of SR and LR)
Increasing returns to scale occur when the percentage change in output is greater than the percentage change in inputs therefore economies of scale have occurred.
Decreasing is where Percentage change in output is less than percentage change in input therefore dis-economies of scale


Oh right thanks
Reply 67
Original post by qr95
Everything but labour markets

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You may be confused here, if anyone doesn't have a good understanding of the 5 main objectives (theories) of the firm, I'm more than happy to briefly outline them
Reply 68
Original post by Ecomax
It is indeed one of the biggest, would certainly disagree with anyone recommending not revising the section, there really isn't a lot to it .. More than happy to answer any urgent questions people have on the section


Im really struggling... What is a labour market?

help appreciated
Reply 69
Original post by Ecomax
You may be confused here, if anyone doesn't have a good understanding of the 5 main objectives (theories) of the firm, I'm more than happy to briefly outline them


profit max
revenue max
sales max
cost minimisation

What's the last one?
Reply 70
Original post by Ecomax
You may be confused here, if anyone doesn't have a good understanding of the 5 main objectives (theories) of the firm, I'm more than happy to briefly outline them


Is this the profit maximisation, sales max, satisficing etc stuff?
Reply 71
Original post by Axion
profit max
revenue max
sales max
cost minimisation

What's the last one?


-Profit Max
-Revenue Max (Sales is the same thing)
-Managerial (Satisficing)
-Neo-Keynesian (More for Evaluation)
-Limit Pricing (Keeping out Competition, Maintaining Position in market)
Reply 72
Original post by nadster
Is this the profit maximisation, sales max, satisficing etc stuff?


It is indeed, they can almost almost be used in your final evaluation/conclusion, highlighting the fact that firms are not always profit maximisers .. they have other objectives etc etc
Reply 73
Original post by Ecomax
-Profit Max
-Revenue Max (Sales is the same thing)
-Managerial (Satisficing)
-Neo-Keynesian (More for Evaluation)
-Limit Pricing (Keeping out Competition, Maintaining Position in market)


I didn't know that limit pricing was an objective. What is the neo-Keynesian theory?
Hey I got 67 on this in January and I'm hoping to get an A/B :biggrin: I did really well on Section A ( heading for an A) and then on section B I messed up (low D grade) :frown: I really do hope that the distribution of income and wealth does come up because I would destroy the exam, that and trade unions are my best areas :lol: There's just too much content in this, I prefer Unit 4 by far.
Reply 75
Original post by Axion
profit max
revenue max
sales max
cost minimisation

What's the last one?


Firms may have objectives to increase market share allowing them to benefit from economies of scale

Is this right
Reply 76
Original post by Ecomax
It is indeed, they can almost almost be used in your final evaluation/conclusion, highlighting the fact that firms are not always profit maximisers .. they have other objectives etc etc


lol wtf, limit pricing is not an objective. cost minimisation certainly is though
Reply 77
Original post by qr95
Firms may have objectives to increase market share allowing them to benefit from economies of scale

Is this right


they increase market share through sales max normally
Reply 78
Original post by Axion
Im really struggling... What is a labour market?

help appreciated


Going to have to be slightly sarcastic here but a market for labour.

http://www.aqa.org.uk/subjects/business-studies/a-level/economics-2140/subject-content

However in the section, you need to understand the Marginal Revenue Productivity of Labour theory (Demand Curve for Labour)
-How wage rates are determined in Perfectly Competitive, Competitive and Monopsony labour market structures.
-The effect of a Trade union on each of these structures in terms of wages and Employment
-The effect of NMW in each of these structures
-Discrimination

then Labour Market Failure and on to the Dist of Income and Wealth
Reply 79
Original post by Ecomax
Going to have to be slightly sarcastic here but a market for labour.

http://www.aqa.org.uk/subjects/business-studies/a-level/economics-2140/subject-content

However in the section, you need to understand the Marginal Revenue Productivity of Labour theory (Demand Curve for Labour)
-How wage rates are determined in Perfectly Competitive, Competitive and Monopsony labour market structures.
-The effect of a Trade union on each of these structures in terms of wages and Employment
-The effect of NMW in each of these structures
-Discrimination

then Labour Market Failure and on to the Dist of Income and Wealth


Jk :P i know labour markets but would never attempt a question on income/wealth

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