In many modern economies, tech-driven sectors such as cloud services, mobile application distribution, and online ride-hailing are increasingly dominated by a tiny number of dominant firms, creating highly concentrated oligopolistic markets.
Evaluate the view that rising market concentration in tech-driven oligopolies inevitably leads to collusive pricing behavior and a reduction in consumer welfare, rather than dynamic efficiency and product innovation. Refer to industries of your choice in your answer.
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.