Table 1 shows information about two service markets.
| Market | Combined market share of the four largest firms | Product differentiation | Conditions of entry |
|---|---|---|---|
| Same-day bicycle-delivery services in one city | 12% | Weak: customers regard the services as close substitutes | A bicycle, equipment and insurance cost about £3,000 |
| Commercial cold-storage services at one port | 86% | Strong: services differ in temperature range, storage facilities and tracking | Specialist facilities cost about £35 million and firms need permission to operate inside the port |
Using the information in Table 1, explain which market is more concentrated and how this is likely to affect the freedom of its largest firms to raise prices.
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.