Market Structures

Oligopolies are able to avoid price competition while maintaining supernormal profits in the long run.

Evaluate this statement.

Monopolies restrict output to raise prices to exploit consumers.

With the help of a diagram, assess the extent to which a government should intervene in monopoly markets.

The degree of competition that a firm experiences is determined only by the barriers to entry into its market.

With the help of a diagram(s), evaluate this statement.

With the help of a diagram, evaluate the impact on consumers and producers of an increase in market contestability.

Subnormal and supernormal profits are only experienced in the short run and only by firms in perfect competition.

With the help of diagrams, evaluate this statement.

Evaluate, with the aid of a diagram(s), whether excess profit (supernormal profit) is always necessary for the continued existence of firms in perfect competition and monopoly.

Evaluate, with the help of a diagram(s) how total market demand and minimum efficient scale may determine the form of market structure in an industry.

A government allows the merger of two large firms in the same industry.

With the help of a diagram, evaluate the view that this merger should not have been allowed.

Evaluate the view that monopolistically competitive firms will always charge lower prices and operate more efficiently than a monopoly firm.