Course Content
Price System, Microeconomy: Consumer Theory
Price System, Microeconomy: Efficiency and market failure, Private costs and benefits, externalities and social costs and benefits
Price System, Microeconomy: Growth and survival of firms; Differing objectives and policies of firms
Macroeconomy: Economic growth and sustainability, Employment, Money and banking
CAIE Alevel Economics (A2)
  • Price competition involves firms trying to gain a competitive advantage by offering lower prices for their goods or services.
    • The goal is to attract more customers by making their products more affordable than those of their competitors.
    • Price competition can be beneficial for consumers as it can lead to lower prices and better value for money.
  • Non-price competition involves firms competing on factors other than price, such as product quality, advertising, and branding.
    • The goal is to differentiate a firm’s product or service from its competitors and create brand loyalty among customers.
    • Non-price competition can be beneficial for firms as it allows them to maintain higher profit margins and build a stronger brand image.
  • Both price competition and non-price competition have their advantages and disadvantages.
    • Price competition can lead to a “race to the bottom” where firms continually lower their prices to stay competitive, which can ultimately result in lower profit margins and less innovation.
    • Non-price competition can be expensive and time-consuming, as firms invest in marketing and advertising to differentiate themselves from their competitors.
  • In some markets, firms may use a combination of price and non-price competition to gain a competitive advantage. Ultimately, the choice between price and non-price competition will depend on the nature of the market, the preferences of customers, and the resources and capabilities of the firms competing.
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