A dominant producer uses large-scale production to lower costs and funds new research, but customers have few alternatives. Which judgement is most balanced?
A dominant producer must always charge the lowest possible price
Fewer alternatives guarantee that consumers receive better service
Large-scale production means market power has no possible disadvantage
Market power may support lower costs and innovation, but weak rivalry may still lead to higher prices or less choice
149 exam-style questions on AQA GCSE Economics 1.5 Competitive and concentrated markets, covering 1.5.1a The range of market structures, 1.5.1b Distinguishing between market structures, 1.5.2a Characteristics of a competitive market, 1.5.2b How producers operate in competitive markets, 1.5.2c The economic impact of competition, 1.5.3a Characteristics of a non-competitive market, 1.5.3b How producers operate in non-competitive markets, 1.5.3c Monopoly and oligopoly, 1.5.4a The labour market and wage determination, and 1.5.4b Gross and net pay. Each one has a worked solution and a mark scheme showing where the marks go.