The table below shows the annual sales revenue of the five firms operating in a regional passenger rail maintenance market:
| Firm | Annual Revenue (£ millions) |
|---|---|
| Apex Rail | 120 |
| Beacon Engineering | 90 |
| Crest Fleet | 60 |
| Driftwood Logistics | 20 |
| Express Track | 10 |
Based on these data, which one of the following is the correct calculation of the three-firm concentration ratio (CR3CR_3CR3) and the most accurate description of the market structure?
CR3=90%CR_3 = 90\%CR3=90%; the market is in perfect competition.
CR3=70%CR_3 = 70\%CR3=70%; the market is monopolistically competitive.
CR3=90%CR_3 = 90\%CR3=90%; the market is a highly concentrated oligopoly.
CR3=30%CR_3 = 30\%CR3=30%; the market is a contestable 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.