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1.5 Perfect competition, imperfectly competitive markets and monopoly

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Question 35

Table 1 shows the market shares of domestic energy suppliers in a regional economy in 2022.

Table 1

Company% share of market
Apex Energy38
Beacon Power24
Crown Gas18
Other providers20

In 2023, Crown Gas experiences financial distress and exits the market completely.

The most likely result of this exit is that the

A

market environment becomes more competitive.

B

monopoly power of Apex Energy increases.

C

other providers' market share rises to exactly 38%.

D

two-firm concentration ratio remains at 62%.

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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