Market X has 70 firms selling home-composting equipment, and its five largest firms account for 84% of sales. Market Y has 60 firms selling garden hand tools, and no firm in Market Y has more than 3% of sales.
Which statement about concentration in the two markets is most accurate?
Market X is more concentrated because it contains more firms than Market Y
Neither market is concentrated because each contains more than 50 firms
Market Y is more concentrated because it contains fewer firms than Market X
Market X is more concentrated because a few firms make most of its sales
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.