In the table below, all other things being equal, which combination of factors A, B, C or D is most likely to enable an incumbent firm in an oligopolistic market to successfully defend its market share against new, low-cost entrants?
| Price elasticity of demand for the firm's brand | Level of consumer switching costs | Long-run average cost subject to | |
|---|---|---|---|
| A | Low | High | Economies of scale |
| B | High | Low | Diseconomies of scale |
| C | Low | Low | Diseconomies of scale |
| D | High | High | Economies of scale |
A
B
C
D
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.