Unit 3: Business behaviour · WEC13/01

Edexcel International A-level Unit 3, June 2024

All 8 written questions and 6 multiple choice questions from Edexcel International A-level Unit 3 (June 2024), Business behaviour. Case studies: The global fashion retail 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 results from technical economies of scale?

AAn increase in purchasing economies
BA decrease in advertising costs
CAn increase in short-run average costs
DA decrease in long-run average costs

Show the answer

The answer is D.

TopicBusiness growth, mergers and market structure

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

Q21 mark

Which one of the following is the marginal cost of increasing the number of haircuts from 2 to 3? You may use the blank column for your workings.

A$4.00
B$8.00
C$8.66
D$12.50

Show the answer

The answer is B.

TopicRevenues, costs and profits

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

Q31 mark

Which one of the following is the most likely reason why GSK decided to demerge from Haleon?

ATo benefit from external economies of scale
BTo diversify the business
CTo achieve diseconomies of scale
DTo focus on its core business

Show the answer

The answer is D.

TopicBusiness growth, mergers and market structure

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

Q41 mark

Which one of the following is most likely to occur in the long-run?

AAdditional wheat farmers will enter the market
BSome wheat farmers will leave the market
CThe wheat farmer will make supernormal profit
DThe wheat farmer will make a loss

Show the answer

The answer is A.

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 combinations is the most likely impact of this decision? Supernormal profit Price

ANo change No change
BIncrease Increase
CDecrease Decrease
DIncrease No change

Show the answer

The answer is C.

TopicRevenues, costs and profits

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

Q61 mark

Which one of the following is most likely to cause a decrease in the geographical mobility of labour?

AAn increase in the skills of the workforce
BAn increase in relocation grants provided by the government
CAn increase in average house prices and rents
DAn increase in the availability of affordable housing

Show the answer

The answer is C.

TopicThe labour market

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

Section B

Case study

The global fashion retail market

Extracts: Figure 1: Uniqlo's total revenue and profit, billion yen, 2020-2022 · Figure 2: Global fashion retailers, ranked by market value, billion yen, February 2023 · Extract A: Uniqlo's successful growth strategy · Extract B: Uniqlo's revenues and costs · Extract C: The global fashion retail market · Figure 1: adapted from: https://www.fastretailing.com/eng/ir/news/2204141800.html

In the extracts: Ga Ne, Kl Ra, La Un, Revenue Profit, South Korea, USA, Uniqlo's, Australia, Billion, China

Q7(a)Calculate2 marks

With reference to Figure 1, calculate the change in Uniqlo's total costs between 2021 and 2022. Show your workings.

Mark splitApplication 2

TopicRevenues, costs and profits

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

Q7(b)Explain4 marks

With reference to the first paragraph of Extract A, explain what is meant by the term 'organic growth'.

Mark splitKnowledge 2Application 2

TopicBusiness growth, mergers and market structure

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

Q7(c)Analyse6 marks

With reference to the second paragraph of Extract A, analyse two reasons why Uniqlo has been very successful in establishing itself in international markets.

Mark splitKnowledge 2Application 2Analysis 2

TopicRevenues, costs and profits

Question paper p.6 Mark scheme p.7 Examiner report p.4 Open in the tool

Q7(d)Examine8 marks

With reference to Extract B, examine the likely impact of a reduction in Uniqlo's costs of production on its total profits. Illustrate your answer with an appropriate diagram.

Mark splitKnowledge 2Application 2Analysis 2Evaluation 2

TopicRevenues, costs and profits

Question paper p.6 Mark scheme p.8 Examiner report p.4 Open in the tool Draw it: cost curves diagram

Q7(e)Discuss14 marks

With reference to Extract C, Figure 2 and your own knowledge, discuss the likely barriers to entry for a business wishing to enter the global fashion retail market.

Mark splitEvaluation 6

TopicPerfect competition and monopoly

Question paper p.6 Mark scheme p.9 Examiner report p.4 Open in the tool

Section C

Q8OptionalEvaluate20 marks

Evaluate policies that a government could adopt to control monopolies. Illustrate your answer with an appropriate diagram(s).

Question paper p.16 Mark scheme p.11 Examiner report p.4 Open in the tool Draw it: monopoly diagram

Q9OptionalEvaluate20 marks

Evaluate possible reasons for wage differentials in an occupation of your choice. Illustrate your answer with an appropriate diagram(s).

TopicThe labour market

Question paper p.16 Mark scheme p.15 Examiner report p.4 Open in the tool

Q10OptionalEvaluate20 marks

Evaluate the likely effects of collusion on businesses and consumers in an industry of your choice. Illustrate your answer with reference to game theory.

TopicOligopoly and monopolistic competition

Question paper p.16 Mark scheme p.17 Examiner report p.4 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 global fashion retail market

Section C

Other years of Edexcel International A-level Unit 3

Topics on this paper