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UNIVERSITY OF CAMBRIDGE INTERNATIONAL EXAMINATIONS GCE Advanced Subsidiary and Advanced Level
MARK SCHEME for the November 2005 question paper
9708 ECONOMICS
9708/04 Paper 4, maximum raw mark 70
This mark scheme is published as an aid to teachers and students, to indicate the requirements of the examination. It shows the basis on which Examiners were initially instructed to award marks. It does not indicate the details of the discussions that took place at an Examiners’ meeting before marking began. Any substantial changes to the mark scheme that arose from these discussions will be recorded in the published Report on the Examination. All Examiners are instructed that alternative correct answers and unexpected approaches in candidates’ scripts must be given marks that fairly reflect the relevant knowledge and skills demonstrated. Mark schemes must be read in conjunction with the question papers and the Report on the Examination. The minimum marks in these components needed for various grades were previously published with these mark schemes, but are now instead included in the Report on the Examination for this session. •
CIE will not enter into discussion or correspondence in connection with these mark schemes.
CIE is publishing the mark schemes for the November 2005 question papers for most IGCSE and GCE Advanced Level and Advanced Subsidiary Level syllabuses and some Ordinary Level syllabuses.
Page 1
Mark Scheme GCE AS/A LEVEL – NOVEMBER 2005
Syllabus 9708
Paper 4
Section A 1 (a) What evidence is there in the article that the UK mobile phone companies operate in an imperfect market structure? Only four companies, can fix price, have product differentiation in the handsets, no perfect knowledge. (b) Explain the statement ‘one result will be that cross-subsidisation will disappear and the price of a new handset will go up considerably.’ Explanation of meaning of subsidising one product or service by the profits on another which
MARK SCHEME for the November 2005 question paper
9708 ECONOMICS
9708/04 Paper 4, maximum raw mark 70
This mark scheme is published as an aid to teachers and students, to indicate the requirements of the examination. It shows the basis on which Examiners were initially instructed to award marks. It does not indicate the details of the discussions that took place at an Examiners’ meeting before marking began. Any substantial changes to the mark scheme that arose from these discussions will be recorded in the published Report on the Examination. All Examiners are instructed that alternative correct answers and unexpected approaches in candidates’ scripts must be given marks that fairly reflect the relevant knowledge and skills demonstrated. Mark schemes must be read in conjunction with the question papers and the Report on the Examination. The minimum marks in these components needed for various grades were previously published with these mark schemes, but are now instead included in the Report on the Examination for this session. •
CIE will not enter into discussion or correspondence in connection with these mark schemes.
CIE is publishing the mark schemes for the November 2005 question papers for most IGCSE and GCE Advanced Level and Advanced Subsidiary Level syllabuses and some Ordinary Level syllabuses.
Page 1
Mark Scheme GCE AS/A LEVEL – NOVEMBER 2005
Syllabus 9708
Paper 4
Section A 1 (a) What evidence is there in the article that the UK mobile phone companies operate in an imperfect market structure? Only four companies, can fix price, have product differentiation in the handsets, no perfect knowledge. (b) Explain the statement ‘one result will be that cross-subsidisation will disappear and the price of a new handset will go up considerably.’ Explanation of meaning of subsidising one product or service by the profits on another which