A town has many independent gardeners offering close substitutes at similar prices. One gardener introduces a scheduling method that reduces travelling time between customers.
What is most likely?
Rival gardeners are likely to adopt the scheduling method, reducing the first gardener's cost advantage over time
The market is likely to become less competitive, as the new method makes this gardener's service more differentiated
The gardener is likely to keep a lasting cost advantage, as similar prices discourage rivals from changing their methods
The gardener is likely to charge more than rivals, as a lower cost gives the firm greater control over price
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.