Write your name here
Surname Other names
Candidate Number
Pearson Centre Number
Edexcel GCE
Economics
Advanced
Unit 3: Business Economics and Economic
Efficiency
Tuesday 3 June 2014 – Morning Paper Reference
Time: 1 hour 30 minutes 6EC03/01
You do not need any other materials. Total Marks
PEARSON EDEXCEL GCE A-LEVEL ECONOMICS 6EC03/01
ADVANCED UNIT 3 BUSINESS ECONOMICS AND
ECONOMIC EFFICIENCY JUNE 2024 EXAM
(AUTHENTIC MARKIN SCHEME ATTACHED)
Turn over
P43306A *P43306A0132*
©2014 Pearson Education Ltd.
1/1/1/1/1
, Section A: Answer ALL the questions in this section.
You should spend 35 minutes on this section. Use the data to support your
answers where relevant. You may annotate and include diagrams in your
answers.
1 Dairy Crest Group is a British food producer which uses a large amount of milk
in its production processes to make dairy products. In March 2013, Dairy Crest
Group bought Proper Welsh Milk, a firm which specialises in selling fresh milk.
This takeover could lead to advantages of
(1)
A horizontal integration
B backward vertical integration
C forward vertical integration
D conglomerate integration
E external economies of
scale Answer Explanation
(3)
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(Total for Question 1 = 4 marks)
,2
*P43306A0232*
, 2 A cherry grower finds it impossible to influence the market price of her produce.
Which of the following conditions would most clearly indicate that she operates
in a perfectly competitive market?
(1)
A She produces at an output at which marginal cost is less than marginal revenue
B Marginal cost is equal to total cost at every level of output
C Marginal cost is equal to average cost at every level of output
D She produces at the same output in the short run as in the long run
E Average revenue equals marginal revenue at every level of
output Answer
Explanation
(3)
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(Total for Question 2 = 4 marks)
3
*P43306A0332* Turn over
Surname Other names
Candidate Number
Pearson Centre Number
Edexcel GCE
Economics
Advanced
Unit 3: Business Economics and Economic
Efficiency
Tuesday 3 June 2014 – Morning Paper Reference
Time: 1 hour 30 minutes 6EC03/01
You do not need any other materials. Total Marks
PEARSON EDEXCEL GCE A-LEVEL ECONOMICS 6EC03/01
ADVANCED UNIT 3 BUSINESS ECONOMICS AND
ECONOMIC EFFICIENCY JUNE 2024 EXAM
(AUTHENTIC MARKIN SCHEME ATTACHED)
Turn over
P43306A *P43306A0132*
©2014 Pearson Education Ltd.
1/1/1/1/1
, Section A: Answer ALL the questions in this section.
You should spend 35 minutes on this section. Use the data to support your
answers where relevant. You may annotate and include diagrams in your
answers.
1 Dairy Crest Group is a British food producer which uses a large amount of milk
in its production processes to make dairy products. In March 2013, Dairy Crest
Group bought Proper Welsh Milk, a firm which specialises in selling fresh milk.
This takeover could lead to advantages of
(1)
A horizontal integration
B backward vertical integration
C forward vertical integration
D conglomerate integration
E external economies of
scale Answer Explanation
(3)
....................................................................................................................................................................................................................................................................................
....................................................................................................................................................................................................................................................................................
....................................................................................................................................................................................................................................................................................
....................................................................................................................................................................................................................................................................................
....................................................................................................................................................................................................................................................................................
....................................................................................................................................................................................................................................................................................
....................................................................................................................................................................................................................................................................................
....................................................................................................................................................................................................................................................................................
....................................................................................................................................................................................................................................................................................
....................................................................................................................................................................................................................................................................................
(Total for Question 1 = 4 marks)
,2
*P43306A0232*
, 2 A cherry grower finds it impossible to influence the market price of her produce.
Which of the following conditions would most clearly indicate that she operates
in a perfectly competitive market?
(1)
A She produces at an output at which marginal cost is less than marginal revenue
B Marginal cost is equal to total cost at every level of output
C Marginal cost is equal to average cost at every level of output
D She produces at the same output in the short run as in the long run
E Average revenue equals marginal revenue at every level of
output Answer
Explanation
(3)
....................................................................................................................................................................................................................................................................................
....................................................................................................................................................................................................................................................................................
....................................................................................................................................................................................................................................................................................
....................................................................................................................................................................................................................................................................................
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....................................................................................................................................................................................................................................................................................
....................................................................................................................................................................................................................................................................................
....................................................................................................................................................................................................................................................................................
(Total for Question 2 = 4 marks)
3
*P43306A0332* Turn over
