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1.5 Perfect competition, imperfectly competitive markets and monopoly

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Question 33

Context: Independent Cinema Pricing

Small, independent cinemas face intense competition from large multinational multiplex chains with massive marketing budgets. In the cultural quarter of a major British city, one such independent cinema advertisements its ticket prices in the following way:

  • Super Off-Peak (1.00 pm – 4.30 pm): £5.00
  • Matinee (before 1.00 pm): £6.50
  • Peak Evening (4.30 pm onwards): £9.50

Explain how such a pricing strategy is influenced by price elasticities of demand, revenues, and costs.

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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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