Albany Senior High School/economics/level3/as3.1
Contents
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).
Market structures
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Number of firms | Barriers to entry and exit | Competition used | Type of product | NZ Example |
| Monopoly | |
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| Duopoly | |
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| Oligopoly | |
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| Monopolistic Competition | |
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| Perfect Competition | |
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| Monopsony | |
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Non price marketing strategies
Product differentiation
Product variation
Alternative Strategies
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.
Deriving the Demand Curve
The law of diminishing marginal utility
Optimal Purchase Rule
Consumer Equilibrium
Derivation of the individual demand curve using marginal utility
Deriving the Supply Curve
Accounting and Economic costs
The law of diminishing returns
The shape of the marginal cost curve
Supply curve for the perfect competitor
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.
