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1.5 Perfect competition, imperfectly competitive markets and monopoly

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Question 5

Which one of the following combinations, A, B, C or D, is most likely to increase a firm's monopoly power in a market?

Switching costs for consumersAbsolute value of price elasticity of demand (∣PED∣\vert{}PED\vert{}∣PED∣)
ADecreaseFalls
BIncreaseFalls
CIncreaseRises
DDecreaseRises
A

Switching costs: Decrease; Absolute value of ∣PED∣|PED|∣PED∣: Falls

B

Switching costs: Increase; Absolute value of ∣PED∣|PED|∣PED∣: Falls

C

Switching costs: Increase; Absolute value of ∣PED∣|PED|∣PED∣: Rises

D

Switching costs: Decrease; Absolute value of ∣PED∣|PED|∣PED∣: Rises

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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