A regional market processes food waste into biogas. Table 1 shows how conditions in the market changed over five years.
| Market condition | Year 1 | Year 5 |
|---|---|---|
| Typical cost of building a processing facility | £6 million | £11 million |
| Share of available food waste secured by existing processors under long-term contracts | 45% | 80% |
| New firms entering the market during the year | 2 | 0 |
Using Table 1, explain how the changes shown are likely to affect the market power of the existing processors and the prices they charge.
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.