One of three large mobile-phone networks cuts the price of a contract. Its two main rivals keep their prices unchanged but add extra data and streaming services. Which pair of conclusions is most likely?
Firms are independent, and consumers must face less choice
Firms are independent, and product differentiation must disappear
Firms are interdependent, and consumers may gain choice even if all prices do not fall
Firms are interdependent, and every rival must make the same decision
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.