Unit 3: Business behaviour · WEC13/01

Edexcel International A-level Unit 3, June 2023

All 8 written questions and 6 multiple choice questions from Edexcel International A-level Unit 3 (June 2023), Business behaviour. Case studies: The food delivery market. 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 best describes this type of merger?

AForward vertical integration
BBackward vertical integration
CHorizontal integration
DConglomerate 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.4 Open in the tool

Q21 mark

Which one of the following must be true as output rises from Q1 to Q2?

AMarginal costs are falling
BThere are economies of scale
CMarginal costs are constant
DThere are diseconomies of scale

Show the answer

The answer is D.

TopicBusiness growth, mergers and market structure

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

Q31 mark

Which one of the following is the marginal cost of employing the additional worker?

A$100
B$6 600
C$75 000
D$81 600

Show the answer

The answer is B.

TopicRevenues, costs and profits

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

Q41 mark

Which one of the following can be deduced from this diagram? Profits of the firm in the Number of firms in the industry short-run in the long-run

ALoss Increase
BNormal Decrease
CNormal Increase
DLoss Decrease

Show the answer

The answer is D.

TopicPerfect competition and monopoly

Question paper p.3 Mark scheme p.4 Examiner report p.5 Open in the tool Practise the perfect competition diagram

Q51 mark

At which one of the following would total revenue be maximised?

AThe level of output at which marginal cost is equal to marginal revenue
BThe level of output at which average variable cost is equal to marginal cost
CThe level of output at which average revenue is equal to zero
DThe level of output at which marginal revenue is equal to zero

Show the answer

The answer is D.

TopicRevenues, costs and profits

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

Q61 mark

Which one of the following would be a barrier to entry into this industry?

AHigh level of government subsidies
BHigh sunk costs
CLow level of government regulation
DLow concentration ratio

Show the answer

The answer is B.

TopicBusiness growth, mergers and market structure

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

Section B

Case study

The food delivery market

Extracts: Figure 1: Deliveroo's annual total revenue and loss, £ million, 2017-2021 · Figure 2: Market share (%) of food delivery businesses in the UK, 2017-2021, · Extract A: Deliveroo's market share in the UK · Extract B: Costs and revenues · Figure 1: : https://www.businessofapps.com/data/deliveroo-statistics/ · Figure 2: : https://www.businessofapps.com/data/deliveroo-statistics/

In the extracts: Uber Eats, European Union, UK Deliveroo, Deliveroo's, Dominos, Eat's, Greater, Increased, Loss, Marketing

Q7(a)Calculate2 marks

With reference to Figure 1, calculate the percentage change in Deliveroo's total revenue between 2017 and 2021. You are advised to show your working.

Mark splitApplication 2

TopicRevenues, costs and profits

Question paper p.6 Mark scheme p.5 Examiner report p.3 Open in the tool

Q7(b)Explain4 marks

With reference to Figure 2, explain the market structure of the UK food delivery market in 2021.

Mark splitKnowledge 2Application 2

TopicRevenues, costs and profits

Question paper p.6 Mark scheme p.5 Examiner report p.3 Open in the tool

Q7(c)Analyse6 marks

With reference to Extract B, analyse two factors that influence the demand for online food delivery.

Mark splitKnowledge 2Application 2Analysis 2

TopicRevenues, costs and profits

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

Q7(d)Examine8 marks

With reference to Figure 1 and the first paragraph of Extract B, examine two reasons why Deliveroo is making a loss. Illustrate your answer with an appropriate diagram(s).

Mark splitKnowledge 2Application 2Analysis 2Evaluation 2

TopicRevenues, costs and profits

Question paper p.9 Mark scheme p.7 Examiner report p.3 Open in the tool Draw it: cost curves diagram

Q7(e)Discuss14 marks

With reference to the information provided, discuss the strategies used by food delivery businesses to increase their market shares. Refer to game theory analysis in your answer.

Mark splitEvaluation 6

TopicOligopoly and monopolistic competition

Question paper p.11 Mark scheme p.9 Examiner report p.3 Open in the tool

Section C

Q8OptionalEvaluate20 marks

Evaluate the impact of imposing a maximum wage. Illustrate your answer with an appropriate diagram(s).

TopicThe labour market

Question paper p.14 Mark scheme p.11 Examiner report p.4 Open in the tool

Q9OptionalEvaluate20 marks

Evaluate the impact of a profit maximising monopolist being nationalised. Illustrate your answer with an appropriate diagram(s).

TopicBusiness objectives

Question paper p.14 Mark scheme p.14 Examiner report p.34 Open in the tool Draw it: monopoly diagram Or: natural monopoly diagram

Q10OptionalEvaluate20 marks

Evaluate why the objectives of small and medium-sized enterprises may differ from those of large enterprises. Illustrate your answer with an appropriate diagram(s).

Question paper p.14 Mark scheme p.16 Examiner report p.4 Open in the tool Draw it: 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 food delivery market

Section C

Other years of Edexcel International A-level Unit 3

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