Four independently owned music rehearsal studios in a city become a single business after a merger.
Which effect on booking charges is most likely?
No change in charges because the number of studios and rooms available is unchanged
Charges move towards costs because the merged business becomes a price taker
Weaker pressure to keep charges low because customers have fewer independent alternatives
Stronger pressure to cut charges because the merged business has more customers to lose
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.