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.
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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.
•
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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
Syllabus
Paper
GCE AS/A LEVEL – NOVEMBER 2005
9708
4
© University of Cambridge International Examinations 2005
Section A
1
(a) What evidence is there in the article that the UK mobile phone companies
operate in an imperfect market structure?
[3]
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.’
[4]
Explanation of