For many years one radio station has sold all the local radio advertising in a county. The licensing authority now grants licences to two more stations, which begin selling advertising time to local businesses. What is the most likely result of granting the new licences?
The original station gains more freedom to set its advertising prices, as demand for radio advertising will rise
The original station must now charge the advertising price that the licensing authority sets for every station
The original station keeps the same freedom to set its advertising prices, as only the new stations must consider rivals' prices
The original station has less freedom to set its advertising prices, as businesses can switch to a rival
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.