Unit 3: Business Behaviour

Types of businesses:; private sector organisations; state-owned enterprises (public sector); for-profit and not-for-profit organisations; co-operatives; joint ventures.

Use a - types of businesses: • private sector organisations • state-owned enterprises (public to connect the rule to the data and decision in the question.

This matters because a - types of businesses: • private sector organisations • state-owned enterprises (public determines what can be inferred or chosen; begin with the stated conditions and keep the conclusion tied to the evidence.

Example: apply a - types of businesses: • private sector organisations • state-owned enterprises (public to one small, clearly defined case, show the key step or comparison, and explain the result in words.

Boundary: a - Types of businesses: • private sector organisations • state-owned enterprises (public is not a universal recommendation. Check the syllabus scope, assumptions, units and the limits of the evidence before generalising.

The size of businesses:; SMEs (small- and medium-size enterprises); large corporations.

Use a - size of businesses: • smes (small- and medium-size enterprises) • large corporations to connect the rule to the data and decision in the question.

This matters because a - size of businesses: • smes (small- and medium-size enterprises) • large corporations determines what can be inferred or chosen; begin with the stated conditions and keep the conclusion tied to the evidence.

Example: apply a - size of businesses: • smes (small- and medium-size enterprises) • large corporations to one small, clearly defined case, show the key step or comparison, and explain the result in words.

Boundary: a - size of businesses: • SMEs (small- and medium-size enterprises) • large corporations is not a universal recommendation. Check the syllabus scope, assumptions, units and the limits of the evidence before generalising.

How businesses grow:; organic growth; merger/takeover:; forward vertical integration; backward vertical integration; horizontal integration; conglomerate integration.

Use b - businesses grow: • organic growth • merger/takeover: • forward vertical integration • to connect the rule to the data and decision in the question.

This matters because b - businesses grow: • organic growth • merger/takeover: • forward vertical integration • determines what can be inferred or chosen; begin with the stated conditions and keep the conclusion tied to the evidence.

Example: apply b - businesses grow: • organic growth • merger/takeover: • forward vertical integration • to one small, clearly defined case, show the key step or comparison, and explain the result in words.

Boundary: b - businesses grow: • organic growth • merger/takeover: • forward vertical integration • is not a universal recommendation. Check the syllabus scope, assumptions, units and the limits of the evidence before generalising.

Advantages and disadvantages of each type of merger/takeover.

Use c - advantages and disadvantages of each type of merger/takeover to connect the rule to the data and decision in the question.

This matters because c - advantages and disadvantages of each type of merger/takeover determines what can be inferred or chosen; begin with the stated conditions and keep the conclusion tied to the evidence.

Example: apply c - advantages and disadvantages of each type of merger/takeover to one small, clearly defined case, show the key step or comparison, and explain the result in words.

Boundary: c - Advantages and disadvantages of each type of merger/takeover is not a universal recommendation. Check the syllabus scope, assumptions, units and the limits of the evidence before generalising.

Constraints on business growth:; size of market; access to finance; owner objectives; government regulation and bureaucracy.

Use d - constraints on business growth: • size of market • access to finance • owner objectives to connect the rule to the data and decision in the question.

This matters because d - constraints on business growth: • size of market • access to finance • owner objectives determines what can be inferred or chosen; begin with the stated conditions and keep the conclusion tied to the evidence.

Example: apply d - constraints on business growth: • size of market • access to finance • owner objectives to one small, clearly defined case, show the key step or comparison, and explain the result in words.

Boundary: d - Constraints on business growth: • size of market • access to finance • owner objectives is not a universal recommendation. Check the syllabus scope, assumptions, units and the limits of the evidence before generalising.

Reasons some firms tend to remain small and others grow.

Use e - reasons some firms tend to remain small and others grow to connect the rule to the data and decision in the question.

This matters because e - reasons some firms tend to remain small and others grow determines what can be inferred or chosen; begin with the stated conditions and keep the conclusion tied to the evidence.

Example: apply e - reasons some firms tend to remain small and others grow to one small, clearly defined case, show the key step or comparison, and explain the result in words.

Boundary: e - Reasons some firms tend to remain small and others grow is not a universal recommendation. Check the syllabus scope, assumptions, units and the limits of the evidence before generalising.

Impact of growth of firms on businesses, workers and consumers.

Use f - impact of growth of firms on businesses, workers and consumers to connect the rule to the data and decision in the question.

This matters because f - impact of growth of firms on businesses, workers and consumers determines what can be inferred or chosen; begin with the stated conditions and keep the conclusion tied to the evidence.

Example: apply f - impact of growth of firms on businesses, workers and consumers to one small, clearly defined case, show the key step or comparison, and explain the result in words.

Boundary: f - Impact of growth of firms on businesses, workers and consumers is not a universal recommendation. Check the syllabus scope, assumptions, units and the limits of the evidence before generalising.

Demergers:; reasons for demergers; impact of demergers on businesses, workers and consumers.

Use g - demergers: • reasons for demergers • impact of demergers on businesses, workers and to connect the rule to the data and decision in the question.

This matters because g - demergers: • reasons for demergers • impact of demergers on businesses, workers and determines what can be inferred or chosen; begin with the stated conditions and keep the conclusion tied to the evidence.

Example: apply g - demergers: • reasons for demergers • impact of demergers on businesses, workers and to one small, clearly defined case, show the key step or comparison, and explain the result in words.

Boundary: g - Demergers: • reasons for demergers • impact of demergers on businesses, workers and is not a universal recommendation. Check the syllabus scope, assumptions, units and the limits of the evidence before generalising.

Different business objectives: objectives; profit maximisation; revenue maximisation; sales volume maximisation.; behavioural theories: satisficing.

Use a - different business objectives: objectives • profit maximisation • revenue maximisation to connect the rule to the data and decision in the question.

This matters because a - different business objectives: objectives • profit maximisation • revenue maximisation determines what can be inferred or chosen; begin with the stated conditions and keep the conclusion tied to the evidence.

Example: apply a - different business objectives: objectives • profit maximisation • revenue maximisation to one small, clearly defined case, show the key step or comparison, and explain the result in words.

Boundary: a - Different business objectives: objectives • profit maximisation • revenue maximisation is not a universal recommendation. Check the syllabus scope, assumptions, units and the limits of the evidence before generalising.

The significance of the divorce of ownership from control for business objectives: the principal-agent problem.

Use b - significance of the divorce of ownership from control for business objectives: the to connect the rule to the data and decision in the question.

This matters because b - significance of the divorce of ownership from control for business objectives: the determines what can be inferred or chosen; begin with the stated conditions and keep the conclusion tied to the evidence.

Example: apply b - significance of the divorce of ownership from control for business objectives: the to one small, clearly defined case, show the key step or comparison, and explain the result in words.

Boundary: b - significance of the divorce of ownership from control for business objectives: the is not a universal recommendation. Check the syllabus scope, assumptions, units and the limits of the evidence before generalising.

Formulae for different business objectives:; profit maximisation; revenue maximisation; sales volume maximisation.

Use c - formulae for different business objectives: • profit maximisation • revenue to connect the rule to the data and decision in the question.

This matters because c - formulae for different business objectives: • profit maximisation • revenue determines what can be inferred or chosen; begin with the stated conditions and keep the conclusion tied to the evidence.

Example: apply c - formulae for different business objectives: • profit maximisation • revenue to one small, clearly defined case, show the key step or comparison, and explain the result in words.

Boundary: use the formula and units given in the question, show the substitution and interpret the result; the calculation alone is not the conclusion.

Formulae to calculate and understand the relationship between:; total revenue; average revenue; marginal revenue.

Use a - formulae to calculate and understand the relationship between: • total revenue • to connect the rule to the data and decision in the question.

This matters because a - formulae to calculate and understand the relationship between: • total revenue • determines what can be inferred or chosen; begin with the stated conditions and keep the conclusion tied to the evidence.

Example: apply a - formulae to calculate and understand the relationship between: • total revenue • to one small, clearly defined case, show the key step or comparison, and explain the result in words.

Boundary: use the formula and units given in the question, show the substitution and interpret the result; the calculation alone is not the conclusion.

Price elasticity of demand and its relationship to revenue concepts, including calculations.

Use b - price elasticity of demand and its relationship to revenue concepts, including to connect the rule to the data and decision in the question.

This matters because b - price elasticity of demand and its relationship to revenue concepts, including determines what can be inferred or chosen; begin with the stated conditions and keep the conclusion tied to the evidence.

Example: apply b - price elasticity of demand and its relationship to revenue concepts, including to one small, clearly defined case, show the key step or comparison, and explain the result in words.

Boundary: b - Price elasticity of demand and its relationship to revenue concepts, including is not a universal recommendation. Check the syllabus scope, assumptions, units and the limits of the evidence before generalising.

Derivation of short-run cost curves from the assumption of diminishing marginal productivity.

Use a - derivation of short-run cost curves from the assumption of diminishing marginal to connect the rule to the data and decision in the question.

This matters because a - derivation of short-run cost curves from the assumption of diminishing marginal determines what can be inferred or chosen; begin with the stated conditions and keep the conclusion tied to the evidence.

Example: apply a - derivation of short-run cost curves from the assumption of diminishing marginal to one small, clearly defined case, show the key step or comparison, and explain the result in words.

Boundary: a - Derivation of short-run cost curves from the assumption of diminishing marginal is not a universal recommendation. Check the syllabus scope, assumptions, units and the limits of the evidence before generalising.

The law of diminishing returns.

Use b - law of diminishing returns to connect the rule to the data and decision in the question.

This matters because b - law of diminishing returns determines what can be inferred or chosen; begin with the stated conditions and keep the conclusion tied to the evidence.

Example: apply b - law of diminishing returns to one small, clearly defined case, show the key step or comparison, and explain the result in words.

Boundary: b - law of diminishing returns is not a universal recommendation. Check the syllabus scope, assumptions, units and the limits of the evidence before generalising.

Formulae to calculate and understand the relationship between:; total cost; total fixed cost; total variable cost; average (total) cost; average fixed cost; average variable cost; marginal cost.

Use c - formulae to calculate and understand the relationship between: • total cost • total to connect the rule to the data and decision in the question.

This matters because c - formulae to calculate and understand the relationship between: • total cost • total determines what can be inferred or chosen; begin with the stated conditions and keep the conclusion tied to the evidence.

Example: apply c - formulae to calculate and understand the relationship between: • total cost • total to one small, clearly defined case, show the key step or comparison, and explain the result in words.

Boundary: use the formula and units given in the question, show the substitution and interpret the result; the calculation alone is not the conclusion.

The relationship between:; marginal product and marginal costs; average products and average cost; total product and total cost; short-run and long-run costs.

Use d - relationship between: • marginal product and marginal costs • average products and to connect the rule to the data and decision in the question.

This matters because d - relationship between: • marginal product and marginal costs • average products and determines what can be inferred or chosen; begin with the stated conditions and keep the conclusion tied to the evidence.

Example: apply d - relationship between: • marginal product and marginal costs • average products and to one small, clearly defined case, show the key step or comparison, and explain the result in words.

Boundary: d - relationship between: • marginal product and marginal costs • average products and is not a universal recommendation. Check the syllabus scope, assumptions, units and the limits of the evidence before generalising.

The relationship between long-run cost curves and diseconomies of economies/diseconomies of scale. scale.

Use a - relationship between long-run cost curves and diseconomies of economies/diseconomies of to connect the rule to the data and decision in the question.

This matters because a - relationship between long-run cost curves and diseconomies of economies/diseconomies of determines what can be inferred or chosen; begin with the stated conditions and keep the conclusion tied to the evidence.

Example: apply a - relationship between long-run cost curves and diseconomies of economies/diseconomies of to one small, clearly defined case, show the key step or comparison, and explain the result in words.

Boundary: a - relationship between long-run cost curves and diseconomies of economies/diseconomies of is not a universal recommendation. Check the syllabus scope, assumptions, units and the limits of the evidence before generalising.

Minimum efficient scale.

Use b - minimum efficient scale to connect the rule to the data and decision in the question.

This matters because b - minimum efficient scale determines what can be inferred or chosen; begin with the stated conditions and keep the conclusion tied to the evidence.

Example: apply b - minimum efficient scale to one small, clearly defined case, show the key step or comparison, and explain the result in words.

Boundary: b - Minimum efficient scale is not a universal recommendation. Check the syllabus scope, assumptions, units and the limits of the evidence before generalising.

Distinction between internal/external economies of scale.

Use c - distinction between internal/external economies of scale to connect the rule to the data and decision in the question.

This matters because c - distinction between internal/external economies of scale determines what can be inferred or chosen; begin with the stated conditions and keep the conclusion tied to the evidence.

Example: apply c - distinction between internal/external economies of scale to one small, clearly defined case, show the key step or comparison, and explain the result in words.

Boundary: c - Distinction between internal/external economies of scale is not a universal recommendation. Check the syllabus scope, assumptions, units and the limits of the evidence before generalising.

Sources of internal economies of scale:; financial; technical; managerial; marketing; purchasing; risk bearing.

Use d - sources of internal economies of scale: • financial • technical • managerial • to connect the rule to the data and decision in the question.

This matters because d - sources of internal economies of scale: • financial • technical • managerial • determines what can be inferred or chosen; begin with the stated conditions and keep the conclusion tied to the evidence.

Example: apply d - sources of internal economies of scale: • financial • technical • managerial • to one small, clearly defined case, show the key step or comparison, and explain the result in words.

Boundary: d - Sources of internal economies of scale: • financial • technical • managerial • is not a universal recommendation. Check the syllabus scope, assumptions, units and the limits of the evidence before generalising.

Sources of external economies of scale:; availability of skilled labour; access to transport links; sharing knowledge.

Use e - sources of external economies of scale: • availability of skilled labour • access to to connect the rule to the data and decision in the question.

This matters because e - sources of external economies of scale: • availability of skilled labour • access to determines what can be inferred or chosen; begin with the stated conditions and keep the conclusion tied to the evidence.

Example: apply e - sources of external economies of scale: • availability of skilled labour • access to to one small, clearly defined case, show the key step or comparison, and explain the result in words.

Boundary: e - Sources of external economies of scale: • availability of skilled labour • access to is not a universal recommendation. Check the syllabus scope, assumptions, units and the limits of the evidence before generalising.

Sources of diseconomies of scale:; communication problems; coordination problems; X-inefficiency.

Use f - sources of diseconomies of scale: • communication problems • coordination problems • to connect the rule to the data and decision in the question.

This matters because f - sources of diseconomies of scale: • communication problems • coordination problems • determines what can be inferred or chosen; begin with the stated conditions and keep the conclusion tied to the evidence.

Example: apply f - sources of diseconomies of scale: • communication problems • coordination problems • to one small, clearly defined case, show the key step or comparison, and explain the result in words.

Boundary: f - Sources of diseconomies of scale: • communication problems • coordination problems • is not a universal recommendation. Check the syllabus scope, assumptions, units and the limits of the evidence before generalising.

The distinction between normal profit, supernormal profit and losses.

Use a - distinction between normal profit, supernormal profit and losses to connect the rule to the data and decision in the question.

This matters because a - distinction between normal profit, supernormal profit and losses determines what can be inferred or chosen; begin with the stated conditions and keep the conclusion tied to the evidence.

Example: apply a - distinction between normal profit, supernormal profit and losses to one small, clearly defined case, show the key step or comparison, and explain the result in words.

Boundary: a - distinction between normal profit, supernormal profit and losses is not a universal recommendation. Check the syllabus scope, assumptions, units and the limits of the evidence before generalising.

Short-run and long-run shutdown points.

Use b - short-run and long-run shutdown points to connect the rule to the data and decision in the question.

This matters because b - short-run and long-run shutdown points determines what can be inferred or chosen; begin with the stated conditions and keep the conclusion tied to the evidence.

Example: apply b - short-run and long-run shutdown points to one small, clearly defined case, show the key step or comparison, and explain the result in words.

Boundary: b - Short-run and long-run shutdown points is not a universal recommendation. Check the syllabus scope, assumptions, units and the limits of the evidence before generalising.

The concepts of:; allocative efficiency; productive efficiency; dynamic efficiency; X-inefficiency; efficiency/inefficiency in different market structures.

Use a - concepts of: • allocative efficiency • productive efficiency • dynamic efficiency • to connect the rule to the data and decision in the question.

This matters because a - concepts of: • allocative efficiency • productive efficiency • dynamic efficiency • determines what can be inferred or chosen; begin with the stated conditions and keep the conclusion tied to the evidence.

Example: apply a - concepts of: • allocative efficiency • productive efficiency • dynamic efficiency • to one small, clearly defined case, show the key step or comparison, and explain the result in words.

Boundary: a - concepts of: • allocative efficiency • productive efficiency • dynamic efficiency • is not a universal recommendation. Check the syllabus scope, assumptions, units and the limits of the evidence before generalising.

Calculation of n-firm concentration ratios. ratio.

Use a - calculation of n-firm concentration ratios. ratio to connect the rule to the data and decision in the question.

This matters because a - calculation of n-firm concentration ratios. ratio determines what can be inferred or chosen; begin with the stated conditions and keep the conclusion tied to the evidence.

Example: apply a - calculation of n-firm concentration ratios. ratio to one small, clearly defined case, show the key step or comparison, and explain the result in words.

Boundary: a - Calculation of n-firm concentration ratios. ratio is not a universal recommendation. Check the syllabus scope, assumptions, units and the limits of the evidence before generalising.

The significance of concentration ratios.

Use b - significance of concentration ratios to connect the rule to the data and decision in the question.

This matters because b - significance of concentration ratios determines what can be inferred or chosen; begin with the stated conditions and keep the conclusion tied to the evidence.

Example: apply b - significance of concentration ratios to one small, clearly defined case, show the key step or comparison, and explain the result in words.

Boundary: b - significance of concentration ratios is not a universal recommendation. Check the syllabus scope, assumptions, units and the limits of the evidence before generalising.

Assumptions of perfect competition. competition.

Use a - assumptions of perfect competition. competition to connect the rule to the data and decision in the question.

This matters because a - assumptions of perfect competition. competition determines what can be inferred or chosen; begin with the stated conditions and keep the conclusion tied to the evidence.

Example: apply a - assumptions of perfect competition. competition to one small, clearly defined case, show the key step or comparison, and explain the result in words.

Boundary: a - Assumptions of perfect competition. competition is not a universal recommendation. Check the syllabus scope, assumptions, units and the limits of the evidence before generalising.

Profit-maximising equilibrium in the short run and long run.

Use b - profit-maximising equilibrium in the short run and long run to connect the rule to the data and decision in the question.

This matters because b - profit-maximising equilibrium in the short run and long run determines what can be inferred or chosen; begin with the stated conditions and keep the conclusion tied to the evidence.

Example: apply b - profit-maximising equilibrium in the short run and long run to one small, clearly defined case, show the key step or comparison, and explain the result in words.

Boundary: b - Profit-maximising equilibrium in the short run and long run is not a universal recommendation. Check the syllabus scope, assumptions, units and the limits of the evidence before generalising.

The short-run shutdown point.

Use c - short-run shutdown point to connect the rule to the data and decision in the question.

This matters because c - short-run shutdown point determines what can be inferred or chosen; begin with the stated conditions and keep the conclusion tied to the evidence.

Example: apply c - short-run shutdown point to one small, clearly defined case, show the key step or comparison, and explain the result in words.

Boundary: c - short-run shutdown point is not a universal recommendation. Check the syllabus scope, assumptions, units and the limits of the evidence before generalising.

Productive and allocative efficiency in the short run and long run.

Use d - productive and allocative efficiency in the short run and long run to connect the rule to the data and decision in the question.

This matters because d - productive and allocative efficiency in the short run and long run determines what can be inferred or chosen; begin with the stated conditions and keep the conclusion tied to the evidence.

Example: apply d - productive and allocative efficiency in the short run and long run to one small, clearly defined case, show the key step or comparison, and explain the result in words.

Boundary: d - Productive and allocative efficiency in the short run and long run is not a universal recommendation. Check the syllabus scope, assumptions, units and the limits of the evidence before generalising.

Assumptions of monopolistic competition. competition.

Use a - assumptions of monopolistic competition. competition to connect the rule to the data and decision in the question.

This matters because a - assumptions of monopolistic competition. competition determines what can be inferred or chosen; begin with the stated conditions and keep the conclusion tied to the evidence.

Example: apply a - assumptions of monopolistic competition. competition to one small, clearly defined case, show the key step or comparison, and explain the result in words.

Boundary: a - Assumptions of monopolistic competition. competition is not a universal recommendation. Check the syllabus scope, assumptions, units and the limits of the evidence before generalising.

Types of product differentiation:; physical - product features; marketing - advertising, packaging; distribution - shop, online, telephone.

Use b - types of product differentiation: • physical - product features • marketing - to connect the rule to the data and decision in the question.

This matters because b - types of product differentiation: • physical - product features • marketing - determines what can be inferred or chosen; begin with the stated conditions and keep the conclusion tied to the evidence.

Example: apply b - types of product differentiation: • physical - product features • marketing - to one small, clearly defined case, show the key step or comparison, and explain the result in words.

Boundary: b - Types of product differentiation: • physical - product features • marketing - is not a universal recommendation. Check the syllabus scope, assumptions, units and the limits of the evidence before generalising.

Profit-maximising equilibrium in the short run and long run.

Use c - profit-maximising equilibrium in the short run and long run to connect the rule to the data and decision in the question.

This matters because c - profit-maximising equilibrium in the short run and long run determines what can be inferred or chosen; begin with the stated conditions and keep the conclusion tied to the evidence.

Example: apply c - profit-maximising equilibrium in the short run and long run to one small, clearly defined case, show the key step or comparison, and explain the result in words.

Boundary: c - Profit-maximising equilibrium in the short run and long run is not a universal recommendation. Check the syllabus scope, assumptions, units and the limits of the evidence before generalising.

Productive and allocative efficiency in the short run and long run.

Use d - productive and allocative efficiency in the short run and long run to connect the rule to the data and decision in the question.

This matters because d - productive and allocative efficiency in the short run and long run determines what can be inferred or chosen; begin with the stated conditions and keep the conclusion tied to the evidence.

Example: apply d - productive and allocative efficiency in the short run and long run to one small, clearly defined case, show the key step or comparison, and explain the result in words.

Boundary: d - Productive and allocative efficiency in the short run and long run is not a universal recommendation. Check the syllabus scope, assumptions, units and the limits of the evidence before generalising.

Assumptions of oligopoly.

Use a - assumptions of oligopoly to connect the rule to the data and decision in the question.

This matters because a - assumptions of oligopoly determines what can be inferred or chosen; begin with the stated conditions and keep the conclusion tied to the evidence.

Example: apply a - assumptions of oligopoly to one small, clearly defined case, show the key step or comparison, and explain the result in words.

Boundary: a - Assumptions of oligopoly is not a universal recommendation. Check the syllabus scope, assumptions, units and the limits of the evidence before generalising.

Barriers to entry and exit:; economies of scale; limit pricing; patents; branding; sunk costs; legal.

Use b - barriers to entry and exit: • economies of scale • limit pricing • patents • branding • to connect the rule to the data and decision in the question.

This matters because b - barriers to entry and exit: • economies of scale • limit pricing • patents • branding • determines what can be inferred or chosen; begin with the stated conditions and keep the conclusion tied to the evidence.

Example: apply b - barriers to entry and exit: • economies of scale • limit pricing • patents • branding • to one small, clearly defined case, show the key step or comparison, and explain the result in words.

Boundary: b - Barriers to entry and exit: • economies of scale • limit pricing • patents • branding • is not a universal recommendation. Check the syllabus scope, assumptions, units and the limits of the evidence before generalising.

Interdependence of firms:; simple game theory - two firm/two outcome model; reasons for collusive and non-collusive behaviour; cartels; price leadership; price wars.

Use c - interdependence of firms: • simple game theory - two firm/two outcome model • reasons to connect the rule to the data and decision in the question.

This matters because c - interdependence of firms: • simple game theory - two firm/two outcome model • reasons determines what can be inferred or chosen; begin with the stated conditions and keep the conclusion tied to the evidence.

Example: apply c - interdependence of firms: • simple game theory - two firm/two outcome model • reasons to one small, clearly defined case, show the key step or comparison, and explain the result in words.

Boundary: c - Interdependence of firms: • simple game theory - two firm/two outcome model • reasons is not a universal recommendation. Check the syllabus scope, assumptions, units and the limits of the evidence before generalising.

Costs and benefits of collusion to producers, consumers, workers and governments.

Use d - costs and benefits of collusion to producers, consumers, workers and governments to connect the rule to the data and decision in the question.

This matters because d - costs and benefits of collusion to producers, consumers, workers and governments determines what can be inferred or chosen; begin with the stated conditions and keep the conclusion tied to the evidence.

Example: apply d - costs and benefits of collusion to producers, consumers, workers and governments to one small, clearly defined case, show the key step or comparison, and explain the result in words.

Boundary: d - Costs and benefits of collusion to producers, consumers, workers and governments is not a universal recommendation. Check the syllabus scope, assumptions, units and the limits of the evidence before generalising.

Price competition:; price wars; predatory pricing; limit pricing.

Use e - price competition: • price wars • predatory pricing • limit pricing to connect the rule to the data and decision in the question.

This matters because e - price competition: • price wars • predatory pricing • limit pricing determines what can be inferred or chosen; begin with the stated conditions and keep the conclusion tied to the evidence.

Example: apply e - price competition: • price wars • predatory pricing • limit pricing to one small, clearly defined case, show the key step or comparison, and explain the result in words.

Boundary: e - Price competition: • price wars • predatory pricing • limit pricing is not a universal recommendation. Check the syllabus scope, assumptions, units and the limits of the evidence before generalising.

Non-price competition: (continued); advertising and branding; quality; endorsement; product placement; after-sales service.

Use f - non-price competition: (continued) • advertising and branding • quality • endorsement • to connect the rule to the data and decision in the question.

This matters because f - non-price competition: (continued) • advertising and branding • quality • endorsement • determines what can be inferred or chosen; begin with the stated conditions and keep the conclusion tied to the evidence.

Example: apply f - non-price competition: (continued) • advertising and branding • quality • endorsement • to one small, clearly defined case, show the key step or comparison, and explain the result in words.

Boundary: f - Non-price competition: (continued) • advertising and branding • quality • endorsement • is not a universal recommendation. Check the syllabus scope, assumptions, units and the limits of the evidence before generalising.

Costs and benefits of price and non-price competition to firms, consumers, employees and suppliers.

Use g - costs and benefits of price and non-price competition to firms, consumers, employees to connect the rule to the data and decision in the question.

This matters because g - costs and benefits of price and non-price competition to firms, consumers, employees determines what can be inferred or chosen; begin with the stated conditions and keep the conclusion tied to the evidence.

Example: apply g - costs and benefits of price and non-price competition to firms, consumers, employees to one small, clearly defined case, show the key step or comparison, and explain the result in words.

Boundary: g - Costs and benefits of price and non-price competition to firms, consumers, employees is not a universal recommendation. Check the syllabus scope, assumptions, units and the limits of the evidence before generalising.

Assumptions of monopoly.

Use a - assumptions of monopoly to connect the rule to the data and decision in the question.

This matters because a - assumptions of monopoly determines what can be inferred or chosen; begin with the stated conditions and keep the conclusion tied to the evidence.

Example: apply a - assumptions of monopoly to one small, clearly defined case, show the key step or comparison, and explain the result in words.

Boundary: a - Assumptions of monopoly is not a universal recommendation. Check the syllabus scope, assumptions, units and the limits of the evidence before generalising.

Barriers to entry and exit.

Use b - barriers to entry and exit to connect the rule to the data and decision in the question.

This matters because b - barriers to entry and exit determines what can be inferred or chosen; begin with the stated conditions and keep the conclusion tied to the evidence.

Example: apply b - barriers to entry and exit to one small, clearly defined case, show the key step or comparison, and explain the result in words.

Boundary: b - Barriers to entry and exit is not a universal recommendation. Check the syllabus scope, assumptions, units and the limits of the evidence before generalising.

Profit-maximising equilibrium.

Use c - profit-maximising equilibrium to connect the rule to the data and decision in the question.

This matters because c - profit-maximising equilibrium determines what can be inferred or chosen; begin with the stated conditions and keep the conclusion tied to the evidence.

Example: apply c - profit-maximising equilibrium to one small, clearly defined case, show the key step or comparison, and explain the result in words.

Boundary: c - Profit-maximising equilibrium is not a universal recommendation. Check the syllabus scope, assumptions, units and the limits of the evidence before generalising.

Costs and benefits of monopoly to firms and consumers.

Use d - costs and benefits of monopoly to firms and consumers to connect the rule to the data and decision in the question.

This matters because d - costs and benefits of monopoly to firms and consumers determines what can be inferred or chosen; begin with the stated conditions and keep the conclusion tied to the evidence.

Example: apply d - costs and benefits of monopoly to firms and consumers to one small, clearly defined case, show the key step or comparison, and explain the result in words.

Boundary: d - Costs and benefits of monopoly to firms and consumers is not a universal recommendation. Check the syllabus scope, assumptions, units and the limits of the evidence before generalising.

The concept of 'natural monopoly' and its implications.

Use e - concept of 'natural monopoly' and its implications to connect the rule to the data and decision in the question.

This matters because e - concept of 'natural monopoly' and its implications determines what can be inferred or chosen; begin with the stated conditions and keep the conclusion tied to the evidence.

Example: apply e - concept of 'natural monopoly' and its implications to one small, clearly defined case, show the key step or comparison, and explain the result in words.

Boundary: e - concept of 'natural monopoly' and its implications is not a universal recommendation. Check the syllabus scope, assumptions, units and the limits of the evidence before generalising.

Conditions necessary for third-degree price discrimination.

Use f - conditions necessary for third-degree price discrimination to connect the rule to the data and decision in the question.

This matters because f - conditions necessary for third-degree price discrimination determines what can be inferred or chosen; begin with the stated conditions and keep the conclusion tied to the evidence.

Example: apply f - conditions necessary for third-degree price discrimination to one small, clearly defined case, show the key step or comparison, and explain the result in words.

Boundary: f - Conditions necessary for third-degree price discrimination is not a universal recommendation. Check the syllabus scope, assumptions, units and the limits of the evidence before generalising.

Costs and benefits of price discrimination to firms and consumers.

Use g - costs and benefits of price discrimination to firms and consumers to connect the rule to the data and decision in the question.

This matters because g - costs and benefits of price discrimination to firms and consumers determines what can be inferred or chosen; begin with the stated conditions and keep the conclusion tied to the evidence.

Example: apply g - costs and benefits of price discrimination to firms and consumers to one small, clearly defined case, show the key step or comparison, and explain the result in words.

Boundary: g - Costs and benefits of price discrimination to firms and consumers is not a universal recommendation. Check the syllabus scope, assumptions, units and the limits of the evidence before generalising.

Productive, allocative and dynamic efficiency.

Use h - productive, allocative and dynamic efficiency to connect the rule to the data and decision in the question.

This matters because h - productive, allocative and dynamic efficiency determines what can be inferred or chosen; begin with the stated conditions and keep the conclusion tied to the evidence.

Example: apply h - productive, allocative and dynamic efficiency to one small, clearly defined case, show the key step or comparison, and explain the result in words.

Boundary: h - Productive, allocative and dynamic efficiency is not a universal recommendation. Check the syllabus scope, assumptions, units and the limits of the evidence before generalising.

Assumptions and conditions for a monopsony to operate.

Use a - assumptions and conditions for a monopsony to operate to connect the rule to the data and decision in the question.

This matters because a - assumptions and conditions for a monopsony to operate determines what can be inferred or chosen; begin with the stated conditions and keep the conclusion tied to the evidence.

Example: apply a - assumptions and conditions for a monopsony to operate to one small, clearly defined case, show the key step or comparison, and explain the result in words.

Boundary: a - Assumptions and conditions for a monopsony to operate is not a universal recommendation. Check the syllabus scope, assumptions, units and the limits of the evidence before generalising.

Costs and benefits of a monopsony to firms, consumers and employees.

Use b - costs and benefits of a monopsony to firms, consumers and employees to connect the rule to the data and decision in the question.

This matters because b - costs and benefits of a monopsony to firms, consumers and employees determines what can be inferred or chosen; begin with the stated conditions and keep the conclusion tied to the evidence.

Example: apply b - costs and benefits of a monopsony to firms, consumers and employees to one small, clearly defined case, show the key step or comparison, and explain the result in words.

Boundary: b - Costs and benefits of a monopsony to firms, consumers and employees is not a universal recommendation. Check the syllabus scope, assumptions, units and the limits of the evidence before generalising.

Characteristics of contestable markets.

Use a - characteristics of contestable markets to connect the rule to the data and decision in the question.

This matters because a - characteristics of contestable markets determines what can be inferred or chosen; begin with the stated conditions and keep the conclusion tied to the evidence.

Example: apply a - characteristics of contestable markets to one small, clearly defined case, show the key step or comparison, and explain the result in words.

Boundary: a - Characteristics of contestable markets is not a universal recommendation. Check the syllabus scope, assumptions, units and the limits of the evidence before generalising.

Implications of contestable markets for behaviour of firms on:; profitability; pricing decisions (limit pricing).

Use b - implications of contestable markets for behaviour of firms on: • profitability • to connect the rule to the data and decision in the question.

This matters because b - implications of contestable markets for behaviour of firms on: • profitability • determines what can be inferred or chosen; begin with the stated conditions and keep the conclusion tied to the evidence.

Example: apply b - implications of contestable markets for behaviour of firms on: • profitability • to one small, clearly defined case, show the key step or comparison, and explain the result in words.

Boundary: b - Implications of contestable markets for behaviour of firms on: • profitability • is not a universal recommendation. Check the syllabus scope, assumptions, units and the limits of the evidence before generalising.

Costs and benefits of contestability for firms and consumers.

Use c - costs and benefits of contestability for firms and consumers to connect the rule to the data and decision in the question.

This matters because c - costs and benefits of contestability for firms and consumers determines what can be inferred or chosen; begin with the stated conditions and keep the conclusion tied to the evidence.

Example: apply c - costs and benefits of contestability for firms and consumers to one small, clearly defined case, show the key step or comparison, and explain the result in words.

Boundary: c - Costs and benefits of contestability for firms and consumers is not a universal recommendation. Check the syllabus scope, assumptions, units and the limits of the evidence before generalising.

The significance of sunk costs for contestability.

Use d - significance of sunk costs for contestability to connect the rule to the data and decision in the question.

This matters because d - significance of sunk costs for contestability determines what can be inferred or chosen; begin with the stated conditions and keep the conclusion tied to the evidence.

Example: apply d - significance of sunk costs for contestability to one small, clearly defined case, show the key step or comparison, and explain the result in words.

Boundary: d - significance of sunk costs for contestability is not a universal recommendation. Check the syllabus scope, assumptions, units and the limits of the evidence before generalising.

Factors that influence the demand for labour to a particular labour occupation:; demand for the final product (labour as a derived demand); productivity of labour; price of the product; wage rate relative to price of capital.

Use a - factors that influence the demand for labour to a particular labour occupation: • to connect the rule to the data and decision in the question.

This matters because a - factors that influence the demand for labour to a particular labour occupation: • determines what can be inferred or chosen; begin with the stated conditions and keep the conclusion tied to the evidence.

Example: apply a - factors that influence the demand for labour to a particular labour occupation: • to one small, clearly defined case, show the key step or comparison, and explain the result in words.

Boundary: a - Factors that influence the demand for labour to a particular labour occupation: • is not a universal recommendation. Check the syllabus scope, assumptions, units and the limits of the evidence before generalising.

Factors that influence the elasticity of demand for labour.

Use b - factors that influence the elasticity of demand for labour to connect the rule to the data and decision in the question.

This matters because b - factors that influence the elasticity of demand for labour determines what can be inferred or chosen; begin with the stated conditions and keep the conclusion tied to the evidence.

Example: apply b - factors that influence the elasticity of demand for labour to one small, clearly defined case, show the key step or comparison, and explain the result in words.

Boundary: b - Factors that influence the elasticity of demand for labour is not a universal recommendation. Check the syllabus scope, assumptions, units and the limits of the evidence before generalising.

Factors that influence the supply of labour to a particular labour occupation:; size of population; net migration; income tax rates; level of welfare benefits; government regulations; trade unions.

Use c - factors that influence the supply of labour to a particular labour occupation: • size to connect the rule to the data and decision in the question.

This matters because c - factors that influence the supply of labour to a particular labour occupation: • size determines what can be inferred or chosen; begin with the stated conditions and keep the conclusion tied to the evidence.

Example: apply c - factors that influence the supply of labour to a particular labour occupation: • size to one small, clearly defined case, show the key step or comparison, and explain the result in words.

Boundary: c - Factors that influence the supply of labour to a particular labour occupation: • size is not a universal recommendation. Check the syllabus scope, assumptions, units and the limits of the evidence before generalising.

Factors that influence the elasticity of supply of labour.

Use d - factors that influence the elasticity of supply of labour to connect the rule to the data and decision in the question.

This matters because d - factors that influence the elasticity of supply of labour determines what can be inferred or chosen; begin with the stated conditions and keep the conclusion tied to the evidence.

Example: apply d - factors that influence the elasticity of supply of labour to one small, clearly defined case, show the key step or comparison, and explain the result in words.

Boundary: d - Factors that influence the elasticity of supply of labour is not a universal recommendation. Check the syllabus scope, assumptions, units and the limits of the evidence before generalising.

Labour market equilibrium. of wage rates in.

Use a - labour market equilibrium. of wage rates in to connect the rule to the data and decision in the question.

This matters because a - labour market equilibrium. of wage rates in determines what can be inferred or chosen; begin with the stated conditions and keep the conclusion tied to the evidence.

Example: apply a - labour market equilibrium. of wage rates in to one small, clearly defined case, show the key step or comparison, and explain the result in words.

Boundary: a - Labour market equilibrium. of wage rates in is not a universal recommendation. Check the syllabus scope, assumptions, units and the limits of the evidence before generalising.

Causes of changes in the equilibrium wage rate and quantity of competitive and labour as a result of shifts in demand curves and supply curves. non-competitive.

Use b - causes of changes in the equilibrium wage rate and quantity of competitive and labour to connect the rule to the data and decision in the question.

This matters because b - causes of changes in the equilibrium wage rate and quantity of competitive and labour determines what can be inferred or chosen; begin with the stated conditions and keep the conclusion tied to the evidence.

Example: apply b - causes of changes in the equilibrium wage rate and quantity of competitive and labour to one small, clearly defined case, show the key step or comparison, and explain the result in words.

Boundary: b - Causes of changes in the equilibrium wage rate and quantity of competitive and labour is not a universal recommendation. Check the syllabus scope, assumptions, units and the limits of the evidence before generalising.

Wage setting in the public sector/state-owned enterprises.

Use c - wage setting in the public sector/state-owned enterprises to connect the rule to the data and decision in the question.

This matters because c - wage setting in the public sector/state-owned enterprises determines what can be inferred or chosen; begin with the stated conditions and keep the conclusion tied to the evidence.

Example: apply c - wage setting in the public sector/state-owned enterprises to one small, clearly defined case, show the key step or comparison, and explain the result in words.

Boundary: c - Wage setting in the public sector/state-owned enterprises is not a universal recommendation. Check the syllabus scope, assumptions, units and the limits of the evidence before generalising.

Causes and consequences of the geographical immobility of the labour market labour.

Use a - causes and consequences of the geographical immobility of the labour market labour to connect the rule to the data and decision in the question.

This matters because a - causes and consequences of the geographical immobility of the labour market labour determines what can be inferred or chosen; begin with the stated conditions and keep the conclusion tied to the evidence.

Example: apply a - causes and consequences of the geographical immobility of the labour market labour to one small, clearly defined case, show the key step or comparison, and explain the result in words.

Boundary: a - Causes and consequences of the geographical immobility of the labour market labour is not a universal recommendation. Check the syllabus scope, assumptions, units and the limits of the evidence before generalising.

Causes and consequences of the occupational immobility of labour.

Use b - causes and consequences of the occupational immobility of labour to connect the rule to the data and decision in the question.

This matters because b - causes and consequences of the occupational immobility of labour determines what can be inferred or chosen; begin with the stated conditions and keep the conclusion tied to the evidence.

Example: apply b - causes and consequences of the occupational immobility of labour to one small, clearly defined case, show the key step or comparison, and explain the result in words.

Boundary: b - Causes and consequences of the occupational immobility of labour is not a universal recommendation. Check the syllabus scope, assumptions, units and the limits of the evidence before generalising.

The case for government intervention. intervention in.

Use a - case for government intervention. intervention in to connect the rule to the data and decision in the question.

This matters because a - case for government intervention. intervention in determines what can be inferred or chosen; begin with the stated conditions and keep the conclusion tied to the evidence.

Example: apply a - case for government intervention. intervention in to one small, clearly defined case, show the key step or comparison, and explain the result in words.

Boundary: a - case for government intervention. intervention in is not a universal recommendation. Check the syllabus scope, assumptions, units and the limits of the evidence before generalising.

Measures to control monopolies and mergers: product markets; price regulation; profit regulation; quality standards; performance targets; referral to regulatory authorities; legislation to control mergers and takeovers.

Use b - measures to control monopolies and mergers: product markets • price regulation • profit to connect the rule to the data and decision in the question.

This matters because b - measures to control monopolies and mergers: product markets • price regulation • profit determines what can be inferred or chosen; begin with the stated conditions and keep the conclusion tied to the evidence.

Example: apply b - measures to control monopolies and mergers: product markets • price regulation • profit to one small, clearly defined case, show the key step or comparison, and explain the result in words.

Boundary: b - Measures to control monopolies and mergers: product markets • price regulation • profit is not a universal recommendation. Check the syllabus scope, assumptions, units and the limits of the evidence before generalising.

Measures to promote competition and contestability:; tax incentives and grants to promote small businesses and FDI; deregulation; privatisation; competitive tendering for public sector contracts; trade liberalisation.

Use c - measures to promote competition and contestability: • tax incentives and grants to to connect the rule to the data and decision in the question.

This matters because c - measures to promote competition and contestability: • tax incentives and grants to determines what can be inferred or chosen; begin with the stated conditions and keep the conclusion tied to the evidence.

Example: apply c - measures to promote competition and contestability: • tax incentives and grants to to one small, clearly defined case, show the key step or comparison, and explain the result in words.

Boundary: c - Measures to promote competition and contestability: • tax incentives and grants to is not a universal recommendation. Check the syllabus scope, assumptions, units and the limits of the evidence before generalising.

Measures to protect suppliers and employees:; local sourcing of raw materials and components; employment legislation to protect workers from; exploitation; barriers to entry of foreign firms; restrictions on the monopsony power of firms; nationalisation.

Use d - measures to protect suppliers and employees: • local sourcing of raw materials and to connect the rule to the data and decision in the question.

This matters because d - measures to protect suppliers and employees: • local sourcing of raw materials and determines what can be inferred or chosen; begin with the stated conditions and keep the conclusion tied to the evidence.

Example: apply d - measures to protect suppliers and employees: • local sourcing of raw materials and to one small, clearly defined case, show the key step or comparison, and explain the result in words.

Boundary: d - Measures to protect suppliers and employees: • local sourcing of raw materials and is not a universal recommendation. Check the syllabus scope, assumptions, units and the limits of the evidence before generalising.

The impact of each measure on:; price; profit; efficiency; quality; choice.

Use e - impact of each measure on: • price • profit • efficiency • quality • choice to connect the rule to the data and decision in the question.

This matters because e - impact of each measure on: • price • profit • efficiency • quality • choice determines what can be inferred or chosen; begin with the stated conditions and keep the conclusion tied to the evidence.

Example: apply e - impact of each measure on: • price • profit • efficiency • quality • choice to one small, clearly defined case, show the key step or comparison, and explain the result in words.

Boundary: e - impact of each measure on: • price • profit • efficiency • quality • choice is not a universal recommendation. Check the syllabus scope, assumptions, units and the limits of the evidence before generalising.

Limits to government intervention:; regulatory capture; asymmetric information/information gaps; inadequate resources; lack of regulatory power.

Use f - limits to government intervention: • regulatory capture • asymmetric to connect the rule to the data and decision in the question.

This matters because f - limits to government intervention: • regulatory capture • asymmetric determines what can be inferred or chosen; begin with the stated conditions and keep the conclusion tied to the evidence.

Example: apply f - limits to government intervention: • regulatory capture • asymmetric to one small, clearly defined case, show the key step or comparison, and explain the result in words.

Boundary: f - Limits to government intervention: • regulatory capture • asymmetric is not a universal recommendation. Check the syllabus scope, assumptions, units and the limits of the evidence before generalising.

The case for government intervention. intervention in.

Use a - case for government intervention. intervention in to connect the rule to the data and decision in the question.

This matters because a - case for government intervention. intervention in determines what can be inferred or chosen; begin with the stated conditions and keep the conclusion tied to the evidence.

Example: apply a - case for government intervention. intervention in to one small, clearly defined case, show the key step or comparison, and explain the result in words.

Boundary: a - case for government intervention. intervention in is not a universal recommendation. Check the syllabus scope, assumptions, units and the limits of the evidence before generalising.

Evaluate maximum and minimum wage controls, direct taxes, measures addressing labour immobility, and measures reducing discrimination and exploitation.

Use b - government intervention in labour markets to connect the rule to the data and decision in the question.

This matters because b - government intervention in labour markets determines what can be inferred or chosen; begin with the stated conditions and keep the conclusion tied to the evidence.

Example: apply b - government intervention in labour markets to one small, clearly defined case, show the key step or comparison, and explain the result in words.

Boundary: b - Government intervention in labour markets is not a universal recommendation. Check the syllabus scope, assumptions, units and the limits of the evidence before generalising.