Which one of the following combinations, A, B, C or D, is most likely to increase a firm's market power?
| Number of close substitutes | Brand loyalty | |
|---|---|---|
| A | Increase | Decrease |
| B | Increase | Increase |
| C | Decrease | Increase |
| D | Decrease | Decrease |
Number of close substitutes: Increase; Brand loyalty: Decrease
Number of close substitutes: Increase; Brand loyalty: Increase
Number of close substitutes: Decrease; Brand loyalty: Increase
Number of close substitutes: Decrease; Brand loyalty: Decrease
136 exam-style questions on AQA A Level Economics 1.5 Perfect competition, imperfectly competitive markets and monopoly, covering 1.5.1 Market structures, 1.5.2 The objectives of firms, 1.5.3 Perfect competition, 1.5.4 Monopolistic competition (A-level only), 1.5.5 Oligopoly (A-level only), 1.5.6 Monopoly and monopoly power, 1.5.7 Price discrimination (A-level only), 1.5.8 The dynamics of competition and competitive market processes, 1.5.9 Contestable and non-contestable markets (A-level only), 1.5.10 Market structure, static efficiency, dynamic efficiency and resource allocation (A-level only), and 1.5.11 Consumer and producer surplus (A-level only). Each one has a worked solution and a mark scheme showing where the marks go.