ECON3 Revision Topic Checklist

Transcription

1 ECON3 Revisin Tpic Checklist D yu knw the fllwing? Tpic r 1. Objectives f Firms (WB1) Prfit maximisatin Revenue maximisatin Sales maximisatin Behaviural theries (eg satisficing) 2. Hw and Why d firms grw (WB2) Explain reasns fr mergers/takevers Explain different types f mergers/takevers (eg vertical, hrizntal, cnglmerate) Explain why sme firms chse t stay small, whilst thers chse t grw Explain reasns fr demerger 3. Calculating Revenues (WB3) Illustrate and perfrm simple calculatins t include: Ttal revenue Average revenue Marginal revenue Draw and interpret revenue curves Understand the relatinship between ttal revenue, price elasticity f demand and marginal revenue 4. Calculating Csts (WB4) Illustrate and perfrm simple calculatins t include: Ttal cst Ttal fixed csts Ttal variable csts Average ttal csts Average fixed csts Average variable csts Marginal cst Draw and interpret cst curves Distinguish between shrt run and lng run csts Explain the shape f the shrt run cst curves in terms f the law f diminishing marginal returns 5. Ecnmies and Disecnmies f Scale (WB4b) Explain lng run cncept f Returns t Scale and shape f lng run cst curves Identify Ecnmies and Disecnmies f Scale Distinguish and give example f internal and external ecnmies and disecnmies f scale 6. Ecnmic Efficiency (WB5) Understand and distinguish between prductive and allcative efficiency Explain that the minimum pint n the average ttal cst curve is the mst prductively efficient pint (MC=AC) Explain that allcative efficiency ccurs where price equals marginal cst (P=MC)

2 Understand the meaning f inefficiency eg x-inefficiency Understand the meaning f dynamic efficiency Understand the meaning f technical efficiency 7. Prfit (WB6) Understand and distinguish between nrmal and supernrmal prfit t include: Relating prfit t the bjectives f the firm and the ability f different firms t make nrmal r supernrmal prfits Explain and illustrate n a diagram the cncept f prfit maximisatin using marginal revenue and marginal csts 8. Barriers t Entry (WB7) Understand the meaning and types f barriers t entry and exit and hw they affect the behaviur f firms, t include: Ecnmies f scale Sunk cst (eg advertising) Legal barriers (eg patents) Limit pricing Discuss the significance f barriers t entry and exit t firms perating in different market structures 9. Market Cncentratin (WB8) Explain what is meant by market cncentratin ratis and be able t interpret the meaning and significance fr business behaviur 10. Market Structures (WB9a) Illustrate (with the use f diagrams), explain, assess and evaluate in detail the fllwing market structures and be able t use these market structures t explain and evaluate the behaviur f firms perating in the market (t include the impact n a firm s pricing and utput decisins and ecnmic efficiency) Market Structures t include: Perfect Cmpetitin Mnply Mnplistic cmpetitin Oligply - t include basic game thery 11. Mnpsny (WB9b) Understand the significance f Mnpsny (buyer pwer) and evaluate the ptential csts and benefits f a mnpsny t bth firms and cnsumers illustrating understanding with the use f examples (eg the impact f supermarket mnsny pwer n suppliers) 12. Cntestability Define cntestability Explain hw the threat f cmpetitin (ie a new entrant) may influence the behaviur and market perfrmance f existing firms in the industry Understand the relatinship between sunk csts and the degree f cntestability Use examples t explain the degree f cntestability in the market place (eg banking, airline industry, petrl retailing)

3 13. Gvernment Interventin Explain and evaluate measures aimed at enhancing cmpetitin between firms and their impact n prices, utput and market structure, t include: Explain why gvernments may intervene t encurage cmpetitin r prevent mnplies and mergers Cmpare and evaluate the strengths and weaknesses f methds f regulatin fr example price capping, mnitring f prices and perfrmance targets, Shw awareness f varius types f private sectr invlvement in public sectr rganisatins eg cntracting ut, cmpetitive tendering and public private partnerships (PPP) and private finance initiative (PFI) Useful Resurces: Wrkbks Blink Textbk and Nutter Student Unit Guide A2 Unit 3 Online Multiple Chice practice tests (n intranet) Online Tutr2U Unit 3 curse cmpanin (n intranet) Time past paper practice Tutr2U website Online revisin websites, scp it and blgs as advised n intranet Useful fr up t date articles Scp it: Pinterest: TOP TIPS 1. Get up early and dn t g t bed t late! 2. Active revisin is the best kind f revisin: eg Timed Past Paper practice Wrk smart ding mini plans fr sme f the lnger questins can be as useful as writing ut full answers a mixture f appraches is best Practice evaluatin skill it s the hardest skill and wrth lts f marks learn sme key sentence stems (see cnnectives sheet) (lk at article by Rachel Cle) Cue cards Tpic cards 3. Practice drawing the key market structure diagrams 4. Learn the key frmulas and definitins 5. Take regular breaks and revisit material ften t mve it frm yur shrt term memry t yur lng term memry!

4 Structure f the ECON3 Paper Sectin A Supprted multiple-chice questins - yu write a shrt justificatin f why yu chse that answer and/r why the ther answers are incrrect. Wrth 32 marks. (Eight questins wrth 4 marks each) 1 mark fr chsing the crrect respnse 3 marks fr explanatins Hw t get the three marks fr explanatin Think DREAD! - Definitin Reject* Explanatin Applicatin Diagram *It s a gd idea t end with a knck-ut Remember yu MUST state the letter that yu are rejecting It is nt B because Sectin B One data respnse questin frm a chice f tw questins. Wrth 40 marks. Marks are awarded fr Knwledge, Applicatin, Analysis and Evaluatin. Hw the marks are allcated 4 marks (4KAA) 8 marks (4KAA + 4EVA) 12 marks (6KAA and 6EVA) 16 marks (8KAA and 8EVA) Evaluatin Marks Matter Evaluatin marks are triggered by the fllwing cmmand wrds: Examine Assess Evaluate Discuss T what extent

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