Skip to content

Course home

Sign up

1.5 Perfect competition, imperfectly competitive markets and monopoly

EasyMediumHard
1234567891011121314151617181920212223242526272829303132333435363738394041424344454647484950515253545556575859
Question 40

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

A

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

B

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

C

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

D

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

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.

Question bank