Three large supermarkets dominate a market. One launches a loyalty scheme and the others quickly introduce similar schemes without changing prices. What does this best demonstrate?
Monopoly power prevents non-price competition
Oligopolistic firms are interdependent and may compete through non-price methods
A competitive market must contain many thousands of firms
The supermarkets have stopped competing because prices are unchanged
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.