Business growth & integration

(a) With reference to Extract A, explain one likely impact of the growth of digital markets on allocative efficiency.

(b) With reference to Extract C, examine two effects of increased ‘automation’ on the demand for labour.

(c) With reference to the information provided, discuss whether the price elasticity of demand for video games is elastic or inelastic.

(d) With reference to the information provided, assess whether the market for video game development is contestable.

(e) Discuss the likely benefits of mergers for firms such as Microsoft.

With reference to Extract A, explain one likely impact of the growth of digital markets on allocative efficiency.

With reference to Extract C, examine two effects of increased ‘automation’ on the demand for labour.

With reference to the information provided, discuss whether the price elasticity of demand for video games is elastic or inelastic.

With reference to the information provided, assess whether the market for video game development is contestable.

Discuss the likely benefits of mergers for firms such as Microsoft.

With reference to Figure 1 and Extract A, explain what is meant by ‘price inelastic demand’ (line 8).

Examine one likely externality that arises when a producer generates electricity by burning gas. Use a diagram to show the external costs of production.

With reference to Figure 2 and Extract B, discuss the possible constraints on business growth for firms supplying energy to households in the UK.

EITHER

Evaluate the microeconomic and macroeconomic factors that explain gender-based wage differences in the UK oil and gas industry.

Evaluate the microeconomic and macroeconomic advantages for a country specialising in energy production using gas.

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The makers of Fiat cars merged with the makers of Vauxhall cars in 2021. Fiat management had aggressively sought a merger to achieve economies of scale. The competition authorities in the EU investigated the merger.

(Source: adapted from https://www.thedrive.com/news/34856/ the-merged-fiat-chrysler-and-peugeot-group-will-be-called-stellantis)

Which one of the following best describes the merger of the makers of Fiat cars and Vauxhall cars?

Explain one type of internal economies of scale that the newly merged car company may achieve.

Explain one likely concern the EU competition authorities may have had about the merger.

Using the information provided, explain one externality that arises in the food delivery market.

With reference to Extract B, examine whether the demand for delivered food is price inelastic and income elastic.

With reference to Extract C, discuss the likely effects of increasing integration within the food delivery market.

EITHER

Evaluate the microeconomic and macroeconomic effects of a depreciation of the pound. Refer to restaurants or other food delivery services in your answer.

Evaluate the microeconomic and macroeconomic effects of significant increases in the minimum wage. Refer to restaurants or other food delivery services in your answer.

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5 ‘Bettys’ is a luxury café, first opened in Harrogate in 1919 specialising in afternoon tea service. Since then it has opened a further five branches in Yorkshire. It has no plans to increase the number of cafés. The six branches have 2 million customers a year.

(Source adapted from: https://www.forbes.com/sites/sarahturner/2018/03/22/the-famed-yorkshire-cafe-that-blends-nostalgia-with-profits-and-conservation/#7eb50cec7a4e)

Explain one likely reason why this business has remained small.

Explain why the previous expansion of this business could be described as ‘organic growth’.

Assume ‘Bettys’ merges with a major tea leaf supplier. Which one of the following is most likely to be an advantage as a result of this merger?

5 ‘Bettys’ is a luxury café, first opened in Harrogate in 1919 specialising in afternoon tea service. Since then it has opened a further five branches in Yorkshire. It has no plans to increase the number of cafés. The six branches have 2 million customers a year.

(Source adapted from: https://www.forbes.com/sites/sarahturner/2018/03/22/the-famed-yorkshire-cafe-that-blends-nostalgia-with-profits-and-conservation/#7eb50cec7a4e)

Explain one likely reason why this business has remained small.

Explain why the previous expansion of this business could be described as ‘organic growth’.

Assume ‘Bettys’ merges with a major tea leaf supplier. Which one of the following is most likely to be an advantage as a result of this merger?

With reference to Extract A, explain the difference between a positive statement and a normative statement.

With reference to Extract B, examine the likely benefits to consumers of the integration between BT and EE.

With reference to Extract C, assess possible reasons why many ‘landline-only’ customers do not switch to a cheaper telephone provider.

Discuss one likely reason for the rise in BT’s profit (Figure 2, Extracts B and C). Use a cost and revenue diagram to support your answer.

Discuss methods of government intervention to protect consumers within the utilities markets, such as energy and telecommunications.

With reference to Figure 1 and Extract A, explain one likely reason for the change in the four-firm concentration ratio of the supermarket sector between 2010 and 2015.

With reference to Figure 2 and Extract A, discuss the possible impact of supermarket monopsony power on both food suppliers and consumers.

Examine measures the government might use to restrict the monopsony power of supermarkets.

Assess the extent to which ‘information gaps’ (Extract B, lines 5 and 6) and ‘irrational behaviour’ (Extract B, line 11) are the main causes of food waste in the UK.

Discuss the likely problems for Sainsbury’s and Morrisons if the suggested merger between them goes ahead. Refer to Figure 1, Extract C and your own knowledge in your answer.