Unit 3: Business behaviour · WEC13/01

Edexcel International A-level Unit 3, June 2025

All 8 written questions and 6 multiple choice questions from Edexcel International A-level Unit 3 (June 2025), Business behaviour. Case studies: The UK bicycle 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 is an example of internal economies of scale?

AAvailability of a skilled labour force
BAccess to transport links
CLower corporation tax
DPurchasing supplies in bulk

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 best describes this firm's objective?

ARevenue maximisation
BProfit maximisation
CSales maximisation
DProfit satisficing

Show the answer

The answer is C.

TopicBusiness objectives

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

Q31 mark

Ceteris paribus, which one of the following is the most likely impact of this policy?

AThe price elasticity of supply of construction workers would increase
BThe demand for construction workers would increase
CThe skills of construction workers would decrease
DWage rates for construction workers would decrease

Show the answer

The answer is B.

TopicThe labour market

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

Q41 mark

Which one of the following is the average variable cost if the garment manufacturer is producing 12 000 items?

A$8.33
B$9.17
C$10.00
D$17.50

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 the reason for this price difference?

ADemand is more price elastic in the afternoon
BDemand is more price inelastic in the afternoon
CSupply is perfectly elastic in the evening
DSupply is more elastic in the evening

Show the answer

The answer is A.

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

Q61 mark

Which one of the following can be deduced from the diagram at an output of 0X?

AMarginal revenue is zero
BMarginal revenue is negative
CMarginal revenue is equal to one
DMarginal revenue is maximised

Show the answer

The answer is A.

TopicRevenues, costs and profits

Question paper p.4 Mark scheme p.4 Examiner report p.3 Open in the tool Practise the PED and revenue diagram

Section B

Case study

The UK bicycle industry

Extracts: Figure 1: Number of bicycles sold in the UK, millions, 2015-2023 · Extract A: The UK bicycle market · Extract B: Competition in the UK bicycle market · Extract C: Halfords · Figure 1: adapted from: · Extract A: adapted from:

In the extracts: Chain Reaction Cycles, Evans Cycles, Competition, Halfords', Millions, Mintel, Online, Revenue, Wiggle

Q7(a)Calculate2 marks

With reference to Figure 1, calculate the percentage change in bicycle sales between 2022 and 2023. You are advised to show your workings.

Mark splitApplication 2

TopicBusiness growth, mergers and market structure

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

Q7(b)Explain4 marks

With reference to the first two paragraphs of Extract B, explain what is meant by 'a reduction in contestability'.

Mark splitKnowledge 2Application 2

TopicBusiness growth, mergers and market structure

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

Q7(c)Analyse6 marks

With reference to Extract B and your own knowledge, analyse two reasons why some bicycle retailers remain small.

Mark splitKnowledge 2Application 2Analysis 2

TopicBusiness growth, mergers and market structure

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

Q7(d)Examine8 marks

With reference to Figure 1, Extract A and Extract B, examine two reasons why some bicycle retailers were forced to close.

Mark splitKnowledge 2Application 2Analysis 2Evaluation 2

TopicBusiness growth, mergers and market structure

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

Q7(e)Discuss14 marks

With reference to Extract C, discuss methods that Halfords could use to increase its profitability. Illustrate your answer with a costs and revenues diagram.

Mark splitEvaluation 6

TopicRevenues, costs and profits

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

Section C

Q8OptionalEvaluate20 marks

Evaluate measures that a government can use to protect employees and suppliers in a product market of your choice. Illustrate your answer with an appropriate diagram(s).

TopicThe labour market

Question paper p.16 Mark scheme p.11 Examiner report p.4 Open in the tool

Q9OptionalEvaluate20 marks

Evaluate the benefits of a natural monopoly supplying a product or service in an industry of your choice. Illustrate your answer with an appropriate diagram(s).

TopicPerfect competition and monopoly

Question paper p.16 Mark scheme p.14 Examiner report p.4 Open in the tool Draw it: natural monopoly diagram

Q10OptionalEvaluate20 marks

Evaluate the benefits of the growth of a business by merger in an industry of your choice. Illustrate your answer with an appropriate diagram(s).

TopicBusiness growth, mergers and market structure

Question paper p.16 Mark scheme p.17 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 UK bicycle industry

Section C

Other years of Edexcel International A-level Unit 3

Topics on this paper