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2.5 Competition

2.5 Competition

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Question 7

Two firms in an oligopoly are considering a price cut. Each expects the other to match a cut but not a price rise. Why may prices remain unchanged?

[1]
A

Neither firm has any competitors

B

Consumers are unable to compare prices

C

Production must be controlled by government

D

Each firm fears a cut will reduce revenue without gaining lasting market share

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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