Unit 3: Business behaviour · WEC13/01

Edexcel International A-level Unit 3, January 2025

All 8 written questions and 6 multiple choice questions from Edexcel International A-level Unit 3 (January 2025), Business behaviour. Case studies: The fast-food industry. Each question shows its marks and topic, and opens the question paper and mark scheme at the right page.

Question paper Mark scheme Examiner report

Section A

Q11 mark

Which one of the following conditions is necessary for Luxottica to maximise its profits?

AMarginal revenue is equal to marginal cost
BAverage cost is equal to marginal cost
CMarginal cost is equal to zero
DMarginal revenue is equal to zero

Show the answer

The answer is A.

TopicRevenues, costs and profits

Question paper p.2 Mark scheme p.4 Examiner report p.3 Open in the tool

Q21 mark

Which one of the following best describes this type of arrangement?

AA co-operative
BState-owned enterprise
CA joint venture
DHorizontal integration

Show the answer

The answer is C.

TopicBusiness growth, mergers and market structure

Question paper p.2 Mark scheme p.4 Examiner report p.3 Open in the tool

Q31 mark

Which one of the following is most likely to cause the demand for labour to be inelastic?

ALabour can be easily substituted by capital
BThe workers are all members of a trade union
CThere is a large supply of labour available to work in the industry
DLabour costs are a small percentage of total costs

Show the answer

The answer is D.

TopicThe labour market

Question paper p.3 Mark scheme p.4 Examiner report p.3 Open in the tool

Q41 mark

At which one of the following prices would the producer sell sweetcorn in the short-run but shut-down in the long-run?

Show the answer

The answer is B.

TopicRevenues, costs and profits

Question paper p.3 Mark scheme p.4 Examiner report p.3 Open in the tool

Q51 mark

Which one of the following best describes this pricing strategy?

AMarginal cost pricing
BLimit pricing
CPredatory pricing
DPrice discrimination

Show the answer

The answer is C.

TopicPrice discrimination and contestable markets

Question paper p.4 Mark scheme p.5 Examiner report p.3 Open in the tool

Q61 mark

6 Which one of the following diagrams illustrates the total revenue curve for a profit-maximising firm operating in a perfectly competitive market?

ABCosts, Costs, revenues revenues Output Output C D Costs, Costs, revenues revenues Output Output A
B
C
D

Show the answer

The answer is B.

TopicRevenues, costs and profits

Question paper p.5 Mark scheme p.5 Examiner report p.3 Open in the tool Practise the perfect competition diagram

Section B

Case study

The fast-food industry

Extracts: Figure 1: Global market share of companies in the fast-food industry, 2023 · Extract A: The global fast-food market · Extract B: McDonald's · Extract C: McDonald's opens CosMc's · Figure 1: adapted from: · Extract A: adapted from:

In the extracts: Burger King, Domino's Pizza, Pizza Hut, Uber Eats, McDonald's, CosMc's, KFC, Starbucks, USA, Acknow

Q7(a)Calculate2 marks

With reference to Figure 1, calculate the 4-firm concentration ratio of the global fast-food industry. You are advised to show your workings.

Mark splitApplication 2

TopicBusiness growth, mergers and market structure

Question paper p.6 Mark scheme p.6 Examiner report p.3 Open in the tool

Q7(b)Explain4 marks

With reference to Extract C, explain what is meant by organic growth.

Mark splitKnowledge 2Application 2

TopicBusiness growth, mergers and market structure

Question paper p.6 Mark scheme p.7 Examiner report p.3 Open in the tool

Q7(c)Analyse6 marks

With reference to Extract A, analyse two reasons why the global fast-food market is expected to grow.

Mark splitKnowledge 2Application 2Analysis 2

TopicBusiness growth, mergers and market structure

Question paper p.6 Mark scheme p.8 Examiner report p.4 Open in the tool

Q7(d)Examine8 marks

With reference to the last paragraph of Extract B, examine the likely impact on McDonald's profits by switching 'to suppliers that use more ethical and sustainable methods of production'. Illustrate your answer with an appropriate diagram.

Mark splitKnowledge 2Application 2Analysis 2Evaluation 2

TopicBusiness growth, mergers and market structure

Question paper p.6 Mark scheme p.9 Examiner report p.4 Open in the tool Draw it: cost curves diagram

Q7(e)Discuss14 marks

With reference to Figure 1, Extract C and your own knowledge, discuss the likely effects of McDonald's opening CosMc's on its competitors.

Mark splitEvaluation 6

TopicBusiness growth, mergers and market structure

Question paper p.6 Mark scheme p.11 Examiner report p.4 Open in the tool

Section C

Q8OptionalEvaluate20 marks

Evaluate the benefits of a monopsony to firms and consumers. Illustrate your answer with an appropriate diagram(s).

TopicThe labour market

Question paper p.16 Mark scheme p.14 Examiner report p.4 Open in the tool

Q9OptionalEvaluate20 marks

Evaluate measures that a government could introduce to promote competition and contestability.

Question paper p.16 Mark scheme p.18 Examiner report p.4 Open in the tool

Q10OptionalEvaluate20 marks

Evaluate the benefits of a takeover for businesses and consumers. Illustrate your answer with an appropriate diagram(s).

TopicBusiness growth, mergers and market structure

Question paper p.16 Mark scheme p.21 Examiner report p.4 Open in the tool Draw it: cost curves diagram Or: monopoly diagram

Question text is quoted from the question papers, © Pearson Edexcel, for students’ private study. Open the official papers and mark schemes from the links on each question. Examiner insights are written with AI assistance and moderated by Finn.

Section A

Section B

The fast-food industry

Section C

Other years of Edexcel International A-level Unit 3

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