A trade association considers four possible scenarios for the market for event-photography services in one region.
Table 1 shows the changes under each scenario.
| Scenario | Change in the number of active businesses | Differentiation between service packages | Start-up cost |
|---|---|---|---|
| Scenario W | 8 businesses enter | Becomes stronger | Rises from £8,000 to £11,000 |
| Scenario X | 10 businesses enter | Becomes weaker | Falls from £8,000 to £5,000 |
| Scenario Y | 5 businesses leave | Becomes weaker | Rises from £8,000 to £12,000 |
| Scenario Z | 4 businesses leave | Becomes stronger | Falls from £8,000 to £6,000 |
Which scenario in Table 1 would move this market furthest towards the competitive end of the range of market structures?
Scenario W
Scenario Y
Scenario X
Scenario Z
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.