Table 1 shows firms' shares of a market. Firms A and B then merge, with total market sales unchanged.
| Firm | Market share |
|---|---|
| A | 28% |
| B | 23% |
| C | 17% |
| D | 12% |
| Other firms | 20% |
Using Table 1, which option correctly gives the merged firm's market share and the likely effect on market concentration?
Market share 31%; concentration falls
Market share 51%; concentration falls
Market share 51%; concentration rises
Market share 71%; concentration rises
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.