Unit 3: Business behaviour · WEC13/01

Edexcel International A-level Unit 3, June 2021

All 8 written questions and 6 multiple choice questions from Edexcel International A-level Unit 3 (June 2021), Business behaviour. Case studies: The Chinese car market. Each question shows its marks and topic, and opens the question paper and mark scheme at the right page.

Question paper Mark scheme

Section A

Q11 mark

Which one of the following conditions is necessary for Mara Group to maximise sales volume of this new phone without making a loss?

AMarginal revenue equals marginal cost
BAverage revenue equals average cost
CMarginal revenue equals zero
DAverage revenue equals marginal revenue

Show the answer

The answer is B.

TopicRevenues, costs and profits

Question paper p.2 Mark scheme p.5 Open in the tool

Q21 mark

Which one of the following is the best description of this type of business?

AState-owned enterprise
BJoint venture
CConglomerate
DCo-operative

Show the answer

The answer is D.

TopicBusiness growth, mergers and market structure

Question paper p.2 Mark scheme p.5 Open in the tool

Q31 mark

3 Which one of the following diagrams illustrates a firm's average fixed cost curve?

ABCosts Costs 0 0 Output Output C D Costs Costs 0 0 Output Output A
B
C
D

Show the answer

The answer is B.

TopicRevenues, costs and profits

Question paper p.3 Mark scheme p.5 Open in the tool Practise the cost curves diagram

Q41 mark

4 Which one of the following will influence the elasticity of demand for labour?

AThe size of the population
BThe level of welfare benefits
CLabour costs as a percentage of total costs
DThe rules determining the number of immigrants

Show the answer

The answer is C.

TopicThe labour market

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

Q51 mark

5 The table shows a firm's total costs of producing textbooks. Output Total costs ($) 0 14 000 1 000 15 000 2 000 16 000 3 000 17 000 4 000 18 000 5 000 19 000 What would be the average variable cost at an output of 4 000 textbooks?

A$0.75
B$1.00
C$3.25
D$4.50

Show the answer

The answer is B.

TopicRevenues, costs and profits

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

Q61 mark

Which one of the following will apply to this firm?

AAllocative inefficiency in the long-run
BProductive efficiency in the short-run
CSupernormal profit in the long-run
DAllocative efficiency in the short-run

Show the answer

The answer is A.

TopicPerfect competition and monopoly

Question paper p.5 Mark scheme p.6 Open in the tool

Section B

Case study

The Chinese car market

Extracts: Figure 1: New car sales in China, 2009-2019 (millions) · Figure 2: Major car manufacturers' sales in China, 2018 (millions) · Extract A: Developments in the Chinese car market · Extract B: Competition in the Chinese car market · Figure 1: adapted from https://wolfstreet.com/wp-content/uploads/2019/07/China-auto-sales-2019- · Figure 2: adapted from https://www.statista.com/statistics/277298/china-leading-passenger-car-

In the extracts: Baoding Great Wall Motors, Beijing Hyundai Motor Co, Guangqi Honda Automotive Co, Shanghai General Motor Co, Shanghai Volkswagen Automotive Co, Changan Automotive Co, Dongfeng Automotive Co, FAW-Volkswagen Automotive Co, SAIC-GM-WULING Automotive Co, United States

Q7(a)Calculate2 marks

With reference to Figure 2, calculate the 4-firm concentration ratio for the car market in China in 2018. You are advised to show your working.

Mark splitApplication 2

TopicBusiness growth, mergers and market structure

Question paper p.7 Mark scheme p.7 Open in the tool

Q7(b)Explain4 marks

With reference to the third paragraph of Extract B, explain what is meant by a 'takeover'.

Mark splitKnowledge 2Application 2

TopicBusiness growth, mergers and market structure

Question paper p.7 Mark scheme p.8 Open in the tool

Q7(c)Analyse6 marks

With reference to Figure 1 and Extract A, analyse two reasons for the fall in car sales in China since 2017.

Mark splitKnowledge 2Application 2Analysis 2

Question paper p.8 Mark scheme p.9 Open in the tool

Q7(d)Examine8 marks

With reference to Extract A, examine the likely effects of the Chinese Government's subsidy on the profits of an electric car manufacturer. Illustrate your answer with an appropriate diagram.

Mark splitKnowledge 2Application 2Analysis 2Evaluation 2

Question paper p.10 Mark scheme p.10 Open in the tool Draw it: cost curves diagram

Q7(e)Discuss14 marks

With reference to Extract A and Extract B and your own knowledge, discuss the types of non-price competition that could be used by car manufacturers to increase the sales of cars.

Mark splitEvaluation 6

TopicOligopoly and monopolistic competition

Question paper p.12 Mark scheme p.12 Open in the tool

Section C

Q8OptionalEvaluate20 marks

Evaluate the possible benefits of privatisation for the consumer. Illustrate your answer with an appropriate diagram(s).

Mark splitEvaluation 8

TopicCompetition policy and government intervention

Question paper p.16 Mark scheme p.15 Open in the tool Draw it: monopoly diagram Or: natural monopoly diagram

Q9OptionalEvaluate20 marks

Evaluate the view that price discrimination is always beneficial for producers. Illustrate your answer with an appropriate diagram(s).

Mark splitEvaluation 8

TopicPrice discrimination and contestable markets

Question paper p.16 Mark scheme p.18 Open in the tool Draw it: price discrimination diagram

Q10OptionalEvaluate20 marks

Evaluate the reasons why wage differences exist. Illustrate your answer with an appropriate diagram(s).

Mark splitEvaluation 8

TopicCompetition policy and government intervention

Question paper p.16 Mark scheme p.21 Open in the tool

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 Chinese car market

Section C

Other years of Edexcel International A-level Unit 3

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