Four firms supply a market for audiobook subscriptions. Their shares of the market are shown below.
| Firm | Market share (%) |
|---|---|
| A | 34 |
| B | 27 |
| C | 22 |
| D | 17 |
Firm A is considering reducing its monthly subscription fee. The other firms have not yet changed their fees.
Calculate the combined market share of the three largest firms.
Explain why Firm A is likely to consider how the other firms might react before deciding whether to reduce its fee.
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.