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1.5 Perfect competition, imperfectly competitive markets and monopoly

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Question 40

Two large firms dominate the national market for supplying specialized wind turbine blades. This means that

barriers to entry must be low because there are two competitor firms rather than a single pure monopoly.

both firms have monopoly power but they may still actively compete against each other.

neither firm possesses market power because they must share the total market demand.

a lack of competition will inevitably lead to immediate diseconomies of scale for both firms.

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