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Edexcel and BTEC Qualifications
Edexcel and BTEC qualifications come from Pearson, the world's leading learning
company. We provide a wide range of qualifications including academic, vocational,
occupational and specific programmes for employers. For further information visit our
qualifications websites at www.edexcel.com or www.btec.co.uk for our BTEC
qualifications.
Alternatively, you can get in touch with us using the details on our contact us page at
www.edexcel.com/contactus.…read more

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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 omissions.
· Examiners should mark according to the mark scheme not
according to their perception of where the grade
boundaries may lie.
· There is no ceiling on achievement.…read more

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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 for each knock out.
Marks are not awarded if the rationale is that `it's not A because it is B' ­
there must be some valid economic rationale.…read more

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Questio Answer Mark
n
Number
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
industry.
Application e.g.…read more

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Question Answer Mark
Number
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 a single seller, one firm
dominates, high barriers to entry, firm=market (1)
Characteristic of monopolistic competition, e.g. as a
market with many sellers, slightly differentiated
products, (1)
Application mark (1) e.g.…read more

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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
Number
4 C
Definition/identification mark: revenue maximisation:
MR=0 is revenue maximisation or verbal identification
that the firm cannot make any more money (1) (4)
Annotation of diagram or as written analysis: Total
revenue is 0KHZ/shading of this area (1) with output
at 0Z (1).…read more

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Question Answer Mark
Number
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.…read more

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MC is
shifted (1); falling profit area and/or price and
output unchanged (1).…read more

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Question Answer Mark
Number
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 when
demand is relatively inelastic means total revenue
falls, or MR<0 (1)
Explanation of the Law of Diminishing Returns e.g.…read more

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