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1.5 Perfect competition, imperfectly competitive markets and monopoly

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Question 33

Over time, one of the major providers in the market for subscription cloud storage services acquires significant monopoly power. The provider decides to restrict its output (storage capacity supplied) below the competitive market level. The most likely consequence of this decision will be

A

a decrease in the barriers to entry into the cloud storage market.

B

a rightward shift of the market demand curve for cloud storage services.

C

additional economies of scale experienced by the dominant provider.

D

an increase in the price paid by consumers for subscription cloud storage services.

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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