Three large energy corporations dominate the national infrastructure for high-capacity hydrogen refueling stations. This market structure implies that
none of the three firms possess monopoly power as the market is shared, preventing any individual firm from influencing the market price.
each firm possesses significant monopoly power, meaning they can influence market conditions while still facing strategic interdependence and potential competition.
barriers to entry must be low because three competing firms prevent the establishment of a pure monopoly.
the presence of three dominant firms ensures that allocative efficiency is achieved as price is driven down to marginal cost.
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.