Extract 1: GreenCart grocery deliveries GreenCart competes with four national grocery-delivery firms. It plans to cut its delivery fee and invest in faster software. One rival has offered to buy GreenCart, reducing the number of firms in the market.
| Measure | Current | After GreenCart's plan |
|---|---|---|
| Delivery fee | £6 | £3 |
| Average delivery time | 90 minutes | 55 minutes |
| Estimated weekly orders | 12,000 | 18,000 |
Explain why the market has features of an oligopoly.
Using the table, calculate the percentage fall in GreenCart's delivery fee.
Analyse how GreenCart's plan may affect competition in the market.
State two reasons why producers compete.
Explain one possible disadvantage of competition for a producer.
Evaluate whether consumers would benefit if a rival bought GreenCart.
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.