In the market for high-capacity solid-state drives (SSDs), which of the following developments is most likely to increase or sustain the monopoly power of a dominant incumbent firm?
An increase in the price elasticity of demand for SSDs due to the rapid development of cloud-storage alternatives.
The widespread adoption of open-source, non-proprietary interface standards by hardware manufacturers across the industry.
A significant decrease in the minimum efficient scale of SSD production facilities relative to total market demand.
The accumulation of steep learning-curve effects that dramatically lower the incumbent's average cost as cumulative output rises.
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.