Competition lowers prices but causes several small firms to close. Which evaluation is best?
Consumers must lose because fewer firms always means higher current prices
The impact depends on whether lower prices and efficiency outweigh the later reduction in choice
Producers and consumers both benefit in every circumstance
Closing firms proves competition has not existed
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.