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Unit 3 economics edexcel ;Basic evaluation points for topics that tend to come up

PLEASE REMEMBER THIS ARE ONLY BASIC AND YOU WILL NEED TO APPLY THESE TO THE CASE STUDY
THAT COMES UP GOOD LUCK!

Effectiveness of regulation when it comes down to increasing firms efficiency

YES

Fear of…

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Predatory pricing is illegal
Hard if all firms chose the same strategies
PED determines which is best
Gains from collusion may outweigh the fines

Take overs/ mergers

BENEFITS

Increased market share
Buy into an already mad brand
Improve image
Removal of wasteful competition
Rationalisation
Economies of scale
Access to new…

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To damage profits/image of other firms
To avoid being fined
To increase profits
First mover advantage

EVALUATION

Less trust in the future
Prisoners dilemma=who will confess first?
Size of fine
Threat of a fine
Nash equilibrium not possible

Unbranded products

BENEFITS

More allocative efficiency
Increased consumer surplus
Increase in demand…

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