Pet owners in one district can now book appointments with six salons rather than two because four salons have recently opened.
Which effect on the service received by consumers is most likely?
Faster complaint handling because salons risk losing customers to a rival
More limited opening hours because each salon gains greater power over customers
Less variation in service because additional sellers prevent product differentiation
No change in service because salons facing more rivals compete only by cutting prices
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.