Albany Senior High School/economics/level3/as3.1

= Achievement Standard 3.1 - 90629 =

Please find a copy of the Achievement Standard for 3.1

Topic 1 - Market types
The description of the behaviour of firms and the different markets in which they operate, will involve a selection from: • monopoly, perfect competition, duopoly, oligopoly, monopolistic competition, and monopsony • domestic examples of firms in these markets • non-price marketing strategies that firms use • product differentiation with domestic examples under different markets • alternative strategies other than short-term profit maximisation (eg sales maximisation).

Non price marketing strategies
Product differentiation

Product variation

Topic 2 - Deriving the demand and supply curves
Recognition of marginal concepts that relate to supply and demand will involve a selection from: • the law of diminishing marginal utility • the optimal purchase rule and consumer equilibrium • intuitive derivation of individual demand curve using marginal utility • accounting and economic (opportunity) costs • the law of diminishing returns to show its relationship to increasing costs, the shape of the marginal cost curve and supply for the perfect competitor • short-run average, marginal and total cost concepts and their relationships.

Topic 3 - Marginal Analysis
Use of marginal analysis to recognise or explain equilibrium for the perfectly competitive firm or the monopolist will involve a selection from: • average and marginal revenue and their relationships • marginal analysis to determine output and pricing decisions • short- or long-run equilibrium positions. • a thorough understanding of the application of marginal analysis to explain changes in a given situation • a full discussion of the application of marginal analysis to explain changes in the short- and long-run.