At the beginning of 2023, the four biggest accountancy firms in the world saw demand for their services fall. One reason for this weaker demand was that mergers in other sectors, including the chocolate industry, also dropped. Three of the accountancy firms cut back the number of new employees they recruited, while the remaining accountancy firm announced redundancies. The ease with which workers can secure new jobs depends on their mobility.
(a)[2]
Identify two advantages that a firm may obtain by merging with another firm.
(b)[4]
Explain two disadvantages workers may face because they lose their jobs.
(c)[6]
Analyse the advantages of an increase in labour mobility.
(d)[8]
Discuss whether the demand for chocolate is likely to be price elastic.
Worked solution & mark scheme
This 20-mark question has a full step-by-step worked solution and mark scheme. One marking point: “Expand market power / cut competition” …