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UNOFFICIAL Mark Scheme Edexcel MicroEconomics 9EC0-1 Paper 1 20 May 2019

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for the 25 marker on collusion. could I say that one reason for collusion is to maximise profits which evokes expansion benefits and evaluate this the game theory and incentive to cheat the agreements. and for my other point, I've said that some markets are better suited e.g higher barriers to entry so colluding allows them too maximise revenue which can have further benefits e.g monopsony power then evaluate this with the risk of regulation e.g taxes
I said this, but some people in my class said lowered costs. Hope we are right aswell!! Seen another question like this and they accept both lowered costs or increased revenue so should be good
Original post by korenroanna
Can i say increase prices lead to an increase in AR and MR for the 12 marker leading to increased profits?
hiardressers question - low barriers to entry
Original post by szak____
Yes !!! Was so harsh and stretched


I don’t understand, I thought they were awarding us 12 marks for the one paragraph regarding the ONE reason with strong evaluation and a well annotated cost and revenue diagram. Were we expected to write 2 points/paragraphs?
I did question 7 but stupid me didn't put an industry of my choice... I used application such as gig economy and uk productivity issues but I didnt use an industry of my choice. How much do you think I am limited to?
For the 10 marker about why consumers don’t switch provider I did one point about irrational behaviour such as habitual behaviour and weakness at computation (which I think most people did). But for my second point I wrote about how there was inelastic PED since it is a small proportion of income and there is brand loyalty. Do you guys think talking about PED was wrong for that question since the extract didn’t really talk about prices increasing?
In the 12 marker was it fine to state one point as it mentioned one reason why rise in profits
I did that too but I’m not sure if we had to write 2 paragraphs or not
Original post by Mazeeeee
In the 12 marker was it fine to state one point as it mentioned one reason why rise in profits
Original post by Mazeeeee
In the 12 marker was it fine to state one point as it mentioned one reason why rise in profits


Yeah that’s what they asked for. What I did was say that it was due to their monopoly power and then expanded on from that with 2 ways that could’ve benefited from it.
Is it alright to say 3.888 for the PES?
Yes - a range of answers will be rewarded (that are close to 3.888 e.g. 3.8-3.9)
Original post by ChemEng456
Is it alright to say 3.888 for the PES?
How many marks for an A in the paper
Original post by Wayfarerx
How many marks for an A in the paper


probs like 70% 56/80
Original post by Andym101
For the collusion 25 market, I used kinked demand to say no reason for firms to cheat because regardless of if they increase/ decrease prices, firms will still lose revenue, is this correct?


I did the same, I guess it answered the question of why some firms take part in collusive behaviour. As long as you linked it to supernormal profits, I reckon it's okay. At least I hope it is aha
Hi was just wondering if these were okay points or if I ventured to far off or if the points were irrelevant.

15 marker intervention
1. Max price - price too high for consumers - govt intervene to lower prices - excess demand
eval - magnitude of max price imposed - larger decrease = higher value of excess demand
2. Subsidies - increase subsidies to lower costs/push supply curve out - demand and supply diagram - fall in price increase in output/revenue
eval - firms willingness to use subsidies to reduce costs of production or to innovate by R&D for long-run benefits

25 marker wage rates
1. Government intervention - min/max price - min price for low paid workers to and max price for high paid workers (e.g. cashiers and managers) to reduce income inequality
eval - magnitude of min price imposed - value of excess supply/increase in unemployment levels
2. Elasticity of demand - more skilled workers = inelastic, vice versa
eval - can't really remember
3. Discrimination - age, gender, race, religion

eval - discrimination is illegal but hard to determine whether one has been rejected due to lack of skills/qualifications or due to discrimination
Original post by Julien78
I don’t understand, I thought they were awarding us 12 marks for the one paragraph regarding the ONE reason with strong evaluation and a well annotated cost and revenue diagram. Were we expected to write 2 points/paragraphs?


No it would've been 12 marks for one point, diagram and evaluation of that point - I assume.
ANYONE????

for the 25 marker on collusion. could I say that one reason for collusion is to maximise profits which evokes expansion benefits and evaluate this the game theory and incentive to cheat the agreements. and for my other point, I've said that some markets are better suited e.g higher barriers to entry so colluding allows them too maximise revenue which can have further benefits e.g monopsony power then evaluate this with the risk of regulation e.g taxes
Original post by Jacklolipop
ANYONE????

for the 25 marker on collusion. could I say that one reason for collusion is to maximise profits which evokes expansion benefits and evaluate this the game theory and incentive to cheat the agreements. and for my other point, I've said that some markets are better suited e.g higher barriers to entry so colluding allows them too maximise revenue which can have further benefits e.g monopsony power then evaluate this with the risk of regulation e.g taxes


I said something similar to what you said
Original post by Jacklolipop
ANYONE????

for the 25 marker on collusion. could I say that one reason for collusion is to maximise profits which evokes expansion benefits and evaluate this the game theory and incentive to cheat the agreements. and for my other point, I've said that some markets are better suited e.g higher barriers to entry so colluding allows them too maximise revenue which can have further benefits e.g monopsony power then evaluate this with the risk of regulation e.g taxes


Read up lad this has been mentioned a lot of times
Original post by Victoria1.
Whats the most i could get if i did one point for the 15 marker with an evaluation & a diagram ?

if it was In detail with evaluation and diagram then I reckon a good 8/15 ? maybe more?

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