Junaid12
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Hi guys, im stuck on two 25 mark questions and was hoping someone could shed some light to get me started

"Evaluate, using appropriate diagram(s), the usefulness of price elasticity of demand to a firm" [25]

"Evaluate the implications of variations un unit labour costs and labour productivity between fims" [25]

Just a little plan would be more than enough

Appreciate the help
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Mo98
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(Original post by Junaid12)
Hi guys, im stuck on two 25 mark questions and was hoping someone could shed some light to get me started

"Evaluate, using appropriate diagram(s), the usefulness of price elasticity of demand to a firm" [25]

"Evaluate the implications of variations un unit labour costs and labour productivity between fims" [25]

Just a little plan would be more than enough

Appreciate the help
2nd question- economies of scales- high/low - efficienes. Labour productivity- different mrps- brain drain- incentives- efficiency vs equality Judgement- depends on labour market contestability etc 1st question- ped inelastic - benefit from eco of scales - effiecies Price elastic- lower eco of scales. - efficiencies. Judgement- depends how elastic/inelastic, different objectives, market failure
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Reality Check
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(Original post by Junaid12)
Hi guys, im stuck on two 25 mark questions and was hoping someone could shed some light to get me started

"Evaluate, using appropriate diagram(s), the usefulness of price elasticity of demand to a firm" [25]

"Evaluate the implications of variations un unit labour costs and labour productivity between fims" [25]

Just a little plan would be more than enough

Appreciate the help
How about you post what plan you currently have, so people can help you flesh it out - you'll find people are more willing to give up their time to help you if they can see you've made an effort.
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rjw99
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1st question is really asking you to express your knowledge of price discrimination, which requires perfect information of elasticity's of demand. Removal of consumer surplus, ability to maximise profits, and so on.Eval. points are that its hard to calculate and expensive to gather information, and that the market structure may not allow price discrimination. Eg, a monopoly power CAN discriminate, however a firm in perfect cannot, so what use is PED?
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