At the beginning of 2023, the world’s four biggest accountancy firms saw demand for their services fall. One reason for this weaker demand was a fall in mergers in other industries, including the chocolate industry. Three of the accountancy firms cut back on the number of new workers they hired, and the remaining accountancy firm announced job losses. How easily workers can move into new jobs is affected by their mobility.
(a)[2]
Identify two benefits a firm could obtain by merging with another firm.
(b)[4]
Explain two disadvantages that workers may face after losing their jobs.
(c)[6]
Analyse the benefits of a rise 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: “Less competition / greater market power / larger market share” …