In a regional aviation market, the dominant carrier, Aerona, controls 85% of all scheduled takeoff slots and has invested millions in non-transferable local advertising campaigns and highly specific, non-reallocable terminal infrastructure. These immense sunk costs and slot constraints indicate that this market is likely to experience a very low level of:
contestability\text{contestability}contestability
market concentration\text{market concentration}market concentration
product differentiation\text{product differentiation}product differentiation
productive inefficiency\text{productive inefficiency}productive inefficiency
92 exam-style questions on Edexcel A A Level Economics 3.4 Market structures, covering 3.4.1 Efficiency, 3.4.2 Perfect competition, 3.4.3 Monopolistic competition, 3.4.4 Oligopoly, 3.4.5 Monopoly, 3.4.6 Monopsony, and 3.4.7 Contestability. Each one has a worked solution and a mark scheme showing where the marks go.