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1.5 Competitive and concentrated markets

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Question 67

Table 1 shows annual sales in the market for harbour towage services at one UK cargo port. The three businesses shown are the only suppliers.

BusinessAnnual sales
Supplier A£4.8 million
Supplier B£3.2 million
Supplier C£2.0 million

Supplier A then buys Supplier B. The port authority will not issue any additional operating licences for five years.

Using Table 1, explain how the acquisition is likely to affect both the choice of supplier and the price paid by shipping companies at the port.

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1.5 Competitive and concentrated markets Questions

  1. GCSE
  2. /Economics
  3. /1.5 Competitive and concentrated markets

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.

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