Several supermarkets cut prices after one rival introduces a discount range. What does this best demonstrate?
Firms in an oligopoly may react to competitors' decisions
A monopoly always charges the lowest possible price
Competition prevents firms earning revenue
Consumers cannot influence producers
28 exam-style questions on OCR GCSE Economics 2.5 Competition, covering 2.5.1 Why producers compete, 2.5.2 How competition affects price, 2.5.3 Economic impact of competition, and 2.5.4 Monopoly and oligopoly. Each one has a worked solution and a mark scheme showing where the marks go.