There is a large increase in the number of different brands and flavours of breakfast cereals offered by major manufacturers in the breakfast food industry.
The most likely impact of this would be
a reduction in non-price competition and marketing expenditure by established firms.
a fall in the price elasticity of demand for any single brand of cereal.
an increase in barriers to entry protecting incumbent firms in the market.
an increase in productive efficiency across the manufacturing process.
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.