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Mark Scheme (Results)

January 2013

GCE Economics (6EC03/01)

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General Marking Guidance

· All candidates must receive the same treatment.
Examiners must mark the first candidate in exactly the
same way as they mark the last.
· Mark schemes should be applied positively. Candidates
must be rewarded for what they have shown they can do
rather than penalised for…

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If an incorrect key has been chosen, the maximum score is 2 out of 4.

Incorrect options can be knocked out, if relevant economic reasoning is
given. If more than one key is knocked out for the same reason this will
earn one mark only. There must be different reasons…

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Questio Answer Mark
2 C

Definition/identification mark: Identification of perfect
competition (1).

Explanation that profit maximisation is MC=MR (1).

Characteristics of perfect competition (1): AR=MR or
perfectly elastic demand, price taker, low barriers to (4)
entry, homogenous product, lots of firms in the

Application e.g. that it…

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Question Answer Mark
3 C (4)

Definition/identification mark: price setting power, e.g.
downward sloping demand curve, or average revenue
downward sloping, or AR slopes downwards, firms can
raise or lower price and still sell its product, or shared
supernormal profits in the short run (1)

Characteristic of monopolist as…

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Example of elimination mark: Knock out of A because
monopoly has high entry barriers
Not D as only monopoly can make supernormal profit
in the long run

Question Answer Mark
4 C

Definition/identification mark: revenue maximisation:
MR=0 is revenue maximisation or verbal identification
that the firm cannot make any…

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Question Answer Mark
5 D

Definition/identification mark: The product is the
same but the users are charged a different price. (1)

Conditions for price discrimination (1). Rationale e.g.
different elasticities of demand (1) and the women
have more elastic/higher value PED than men (1)

Diagram of price discrimination up…

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(or fixed costs) do not award shift mark if MC is
shifted (1); falling profit area and/or price and
output unchanged (1).

Diagram can show smaller profit area:

Or a loss

Example of elimination mark: Knock out of A because
costs rising mean that profits fall (1)

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Question Answer Mark
7 B

Definition/identification mark: total revenue,
marginal cost, e.g. TC/Q, or formula or definition
of price elasticity of demand PED (1)

Explanation of price inelastic demand (in context of (4)
the question), e.g. if prices are cut then demand
rises by a smaller proportion. Cutting price…


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