Four parcel delivery firms each run separate advertising campaigns to attract the same customers.
What disadvantage could arise from the delivery firms each promoting their own service?
Resources go into duplicated campaigns that one supplier alone would not need.
The campaigns reduce the range of delivery services customers can choose from.
The campaigns force each firm to cut its delivery charges to match its rivals.
The campaigns make each firm's service seem less different from its rivals'.
62 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.