In microeconomic theory, the market power of a monopolist often leads to allocative inefficiency and a misallocation of resources. This market failure is best explained by the monopolist:
restricting output to a level where price exceeds marginal cost.
producing at the minimum point of its long-run average cost curve.
passing on cost reductions from economies of scale directly to consumers.
facing a highly elastic demand curve due to low barriers to entry.
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.