My fearless padlet by John keynes https://padlet.com/ocrtransporteconomics/r2qw1sjfivfaem06 Made with a curious mind en-us 2022-03-31 10:12:24 UTC 2022-03-31 15:11:11 UTC hello@padlet.com Exam Practice 3 ocrtransporteconomics https://padlet.com/ocrtransporteconomics/r2qw1sjfivfaem06/wish/2123291903 2022-03-31 10:12:39 UTC https://padlet.com/ocrtransporteconomics/r2qw1sjfivfaem06/wish/2123291903 PART 1 CASE STUDY For each question 1) state the structure/ skill you need to show (based on the command word) 2) Define a key term, 3) State you application points (from case study or own knowledge) 4) LCOR 5) If evaluation the second side or the it depends upon point ocrtransporteconomics https://padlet.com/ocrtransporteconomics/r2qw1sjfivfaem06/wish/2123306735 2022-03-31 10:24:19 UTC https://padlet.com/ocrtransporteconomics/r2qw1sjfivfaem06/wish/2123306735 ocrtransporteconomics https://padlet.com/ocrtransporteconomics/r2qw1sjfivfaem06/wish/2123307512 2022-03-31 10:24:58 UTC https://padlet.com/ocrtransporteconomics/r2qw1sjfivfaem06/wish/2123307512 ocrtransporteconomics https://padlet.com/ocrtransporteconomics/r2qw1sjfivfaem06/wish/2123309162 2022-03-31 10:26:11 UTC https://padlet.com/ocrtransporteconomics/r2qw1sjfivfaem06/wish/2123309162 PART 2, NON CASE STUDY: or each question 1) state the structure/ skill you need to show (based on the command word) 2) Define a key term, 3) State you application points (from case study or own knowledge) 4) LCOR 5) If evaluation the second side or the it depends upon point ocrtransporteconomics https://padlet.com/ocrtransporteconomics/r2qw1sjfivfaem06/wish/2123312407 2022-03-31 10:28:49 UTC https://padlet.com/ocrtransporteconomics/r2qw1sjfivfaem06/wish/2123312407 e.g. Q1b) Discuss = 2 sides + Judgement (AB), K) price war, a pricing strategy where competing firms lower price to AC=MC to steal market share a) 58% discounts A) One side in the long run if ATC > AR then must shutdown as cannot sustain losses (graph) E) However if AR > AVC can at least cover variable costs and no need to shutdown in short term E3) IDU current market share/ if conglomerate. Able to benefit from EOS therefore AVC and ATC lower per flight than rivals ocrtransporteconomics https://padlet.com/ocrtransporteconomics/r2qw1sjfivfaem06/wish/2123316272 2022-03-31 10:32:24 UTC https://padlet.com/ocrtransporteconomics/r2qw1sjfivfaem06/wish/2123316272 c https://padlet.com/ocrtransporteconomics/r2qw1sjfivfaem06/wish/2123440470 2 sides, (k)- collusion- behaviour between multiple business to increase prices above the market equilibrium for mutual benefit,(A) sasol and engen (A), by agreeing to raise prices both firms will experience increases in revenue, this will then lead to increased profits, these profits can then be reinvested into the firm so it can expand which will lead to the firm growing and increasing MS. (IDU) both firms increasing prices if one firm opts for the dominant strategy, and keeps prices low the other firm will experience a fall in rev as consumers opt for the lower price good.

DA]]> 2022-03-31 12:07:34 UTC https://padlet.com/ocrtransporteconomics/r2qw1sjfivfaem06/wish/2123440470 Ethan Luke https://padlet.com/ocrtransporteconomics/r2qw1sjfivfaem06/wish/2123457883 B) 2 sides of argument and a JJ. Definition of a price war. Refer to 58% discount in answer. Price war- less revenue- sun normal profit - firms with no EOS shut down. However mc is very low so the price war won’t affect mc much despite demand rising. Overall depends on PED for product, may cause revenue to rise so firms may not fail if demand is elastic


C) 2 sides (rational/irrational). Define collusion. 
It is rational - high prices - high SNP - lots of DE. However with game theorey - incentive to tell authorities and undercut competition- more market share - may be irrational to collude with the risks 

D) anti-comp behaviour can be a result of monopoly(definition). Gov can increase contestibillity(define). This leads to lower prices - more utility. However may lead to firms leaving if there is high contestabillity - this worsens utility and ups prices due to less supply (graph)

Gov intervention lowers DE meaning higher prices and less EOS. This is inefficient and lowers utility, however lowers risk of exploitation of power


]]> 2022-03-31 12:18:26 UTC https://padlet.com/ocrtransporteconomics/r2qw1sjfivfaem06/wish/2123457883 Luchelcia https://padlet.com/ocrtransporteconomics/r2qw1sjfivfaem06/wish/2123496416 2022-03-31 12:42:02 UTC https://padlet.com/ocrtransporteconomics/r2qw1sjfivfaem06/wish/2123496416 Luchelcia https://padlet.com/ocrtransporteconomics/r2qw1sjfivfaem06/wish/2123507938 A price war is when firms reduce the prices of their goods and services to promote consumers to purchase their good or service instead of another similar firms good or service, normally used in oligopolistic competition. In the short run, firms will lower prices to lure in consumers. In the long run, firms might then raise their prices.]]> 2022-03-31 12:48:07 UTC https://padlet.com/ocrtransporteconomics/r2qw1sjfivfaem06/wish/2123507938 Luchelcia https://padlet.com/ocrtransporteconomics/r2qw1sjfivfaem06/wish/2123531145 Governments could protect consumers by intervening in mergers so that a firm with a high market share could not gain more market share. This would be to ensure firms don’t set prices for consumers too high. Low market share promotes price competition which means prices are lowered.
Governments could protect consumers by deregulation. This would mean low barriers of entry for new businesses which would lead to an increase in competition. Less firms would leave the market because there would be lower barriers to entry.]]> 2022-03-31 13:00:48 UTC https://padlet.com/ocrtransporteconomics/r2qw1sjfivfaem06/wish/2123531145 FEEDBACK: Dan I would refer to collusion linked to a max-i-max strategy, could also refer to collusion being illegal and if caught could face fines to more likely whistleblowing woudl also encourage dominant behaviour ocrtransporteconomics https://padlet.com/ocrtransporteconomics/r2qw1sjfivfaem06/wish/2123786259 2022-03-31 15:02:04 UTC https://padlet.com/ocrtransporteconomics/r2qw1sjfivfaem06/wish/2123786259 Feedback: Luchelcia. Agreed, refer to your intervention as "block a merger" ocrtransporteconomics https://padlet.com/ocrtransporteconomics/r2qw1sjfivfaem06/wish/2123794849 2022-03-31 15:06:16 UTC https://padlet.com/ocrtransporteconomics/r2qw1sjfivfaem06/wish/2123794849 Luchelcia Feedback 2 ocrtransporteconomics https://padlet.com/ocrtransporteconomics/r2qw1sjfivfaem06/wish/2123796975 If you look at Dan's answer and the feedback I gave shows how this could be improved]]> 2022-03-31 15:07:21 UTC https://padlet.com/ocrtransporteconomics/r2qw1sjfivfaem06/wish/2123796975 Ethan Feedback: b) see my examples for reference to shutdown points for each side C yes be clearer as to irrational if firms face heavy fines (i.e. the erisks you mention) d) Just focus on teh government intervention aspect, state policies (break ups/ Maximum prices/ fines) and evaluate why they are or aren't effective ocrtransporteconomics https://padlet.com/ocrtransporteconomics/r2qw1sjfivfaem06/wish/2123804665 2022-03-31 15:11:08 UTC https://padlet.com/ocrtransporteconomics/r2qw1sjfivfaem06/wish/2123804665