Theme 3

• What can monopolies drive in high-cost industries?

  Innovation and efficiency through investment
• What is the price elasticity of demand in monopolistic markets?

  Often lower due to fewer alternatives
• How does the effectiveness of profit satisficing depend on its alignment?

  With broader objectives and stakeholder expectations
• What can sudden or large shifts in demand cause?

  Strain on resources and market distortions
• What does the extent of demand shifts' impact depend on?

  The magnitude of the shift and market adaptability
• How do monopolies affect consumer needs?

  Questionable effectiveness in meeting needs
• How can the scope of supply shifts vary?

  Affecting entire industries or specific products
• What can disrupt a monopolistic market structure?

  New entrants or technologies
• How can demand elasticity be manipulated in monopolistic markets?

  By creating artificial barriers or brand loyalty
• What can be a complex outcome of labour dynamics within natural monopolies?

  Stable employment opportunities versus inefficiencies
• What can monopolies achieve through economies of scale?

  Lower production costs
• What is the scale of a working monopoly's impact?

  Significant, influencing entire sectors
• How long does it take to realize the benefits of horizontal integration?

  Several years for full benefits
• What significantly affects the benefits or harms of natural monopolies?

  Regulatory oversight
• What do critics of natural monopolies advocate for?

  Introducing competition where feasible
• What market share indicates significant monopoly power?

  More than 25% market share
• How can conglomerate integration impact industries?

  Drives innovation but raises market dominance concerns
• What does occupational immobility limit in the labour market?

  Ability to adapt to economic changes
• What do geographical and occupational immobility hinder?

  Efficient allocation of labour resources
• What do critics argue about the bilateral monopoly model?

  It can lead to suboptimal economic outcomes
• What are key factors influencing economies of scale?

  Technological advancements and capital investment
• How can a bilateral monopoly lead to stable employment conditions?

  Through effective negotiation processes
• What can natural monopolies achieve through economies of scale?

  Productive efficiency
• What can a reduction in supplier or labour market vitality lead to over time?

  Lower quality and less innovation
• What are the evaluation criteria for labour market mobility?

  • Efficiency
  • Effectiveness
  • Scope
  • Wider Context
  • Time
  • Equality
  • Priority
  • Scale/Magnitude
• What does monopsony lead to in labour markets?

  Reduced prices and quantities for suppliers
• What are the evaluation criteria for natural monopolies?

  • Efficiency
  • Effectiveness
  • Scope
  • Wider Context
  • Time
  • Equality
  • Priority
  • Scale/Magnitude
• How do minimum wages affect living standards?

  They can improve living standards for low-paid workers
• What is required to address labour market immobility?

  Investment in education, training, and infrastructure
• What is the scale of the impact of labour market immobility?

  Significant, affecting millions of workers
• What alternative to minimum wage hikes do some argue for?

  Enhancing skills and education for workers
• What unintended consequences can arise from rapid demand shifts?

  Environmental degradation and resource depletion
• What is the significance of maximum wages in economic discussions?

  It challenges traditional market-driven compensation
• Who should policies ensure equitable access to relocation support for?

  All workers, including lower-wage sectors
• In which markets can the impact of price discrimination be significant?

  Monopolistic or oligopolistic markets
• What can excessive increases in supply without demand cause?

  Surplus and inefficiencies
• What key factors drive shifts in demand?

  Consumer preferences, income, and demographics
• What can the impact of demand shifts depend on?

  State of the economy and government policy
• What factors influence the effectiveness of price discrimination?

  • Market segmentation data availability
  • Nature of the product or service
  • Regulatory framework
• What can forward integration reduce reliance on?

  Intermediaries in the distribution process