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1.5 Perfect competition, imperfectly competitive markets and monopoly

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Question 13

Table 1 shows the market shares of regional broadband providers in a country in 2023.

Table 1

Company% share of market
NovaTel42
Aether Telecom28
Zephyr Network16
Independent local ISPs14

In 2024, Zephyr Network experiences severe financial distress and exits the market completely.

The most likely result of this exit is that the

A

two-firm concentration ratio (CR2CR_2CR2​) remains at 70%70\%70%.

B

market environment becomes more competitive.

C

monopoly power of NovaTel increases.

D

market share of independent local ISPs rises to exactly 30%30\%30%.

Markscheme

1.5 Perfect competition, imperfectly competitive markets and monopoly Questions

  1. A Level
  2. /Economics
  3. /1.5 Perfect competition, imperfectly competitive markets and monopoly

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.

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