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2.5 Competition

2.5 Competition

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Question 6

What is a possible cost of intense price competition for producers?

[1]
A

Every firm's demand becomes perfectly inelastic

B

Lower profit margins may force some firms to leave the market

C

Production costs automatically become zero

D

The market necessarily becomes a monopoly

Markscheme

2.5 Competition Questions

  1. GCSE
  2. /Economics
  3. /2.5 Competition

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.

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