Perfect & Imperfectly Competitive Markets & Monopolies (AQA A Level Economics): Exam Questions

A monopolistically competitive firm’s demand curve is 

The diagram below shows the kinked demand curve (D) for a firm operating in a competitive oligopolistic market.

The kinked demand curve model provides an explanation of why the 

The diagram below shows the average revenue and marginal revenue (AR and MR) curves, and the average cost and marginal cost (AC and MC) curves, for the only firm in an industry.

If the market is highly contestable, in the long run, the firm is most likely to set its price at

The diagram below shows a firm operating in perfect competition in the short run. 

Which quantity, OE, OF, OG or OH, indicates the output where profits are maximised? 

Which one of the following is most likely to measure the degree of competition in an oligopolistic industry?

The diagram below shows the cost and revenue curves for a monopoly.

At which one of the following levels of output would the firm be productively efficient?              

A monopolistically competitive firm’s demand curve for good X has a price elasticity of demand of minus 1.0 throughout its entire range. All other things being equal, which one of the following is most likely to result in an increase in the firm’s profits?

Figure 3 shows the marginal cost (MC) and average total cost (ATC) curves for a firm in the short run in a perfectly competitive market.

It also shows the firm’s marginal revenue (MR) and average revenue (AR) curves.

Figure 3

What changes can be expected as the market moves into the long run?

In 2020, the market leader sold around three times as many vacuum cleaners in the UK as its closest rival. The market leader’s dominance was built on technical innovation, protected by legal patents.

However, rivals have developed their own designs and are now challenging the market leader.

What feature of competitive markets does this illustrate?

Figure 5 shows the demand (D) curve and the average and marginal cost (AC and MC) curves for a firm operating in a perfectly competitive market for eggs.

The firm is in equilibrium at the initial market price of £1.25 for a box of 6 eggs. If the market price increases to £1.50 for a box of eggs the firm will

A firm charging different customers different prices for the same product is practising

Figure 5 shows the average revenue (AR), marginal revenue (MR) and marginal cost (MC) curves for an industry which was perfectly competitive but is now a monopoly. The cost and revenue curves remain unchanged.

Which of the following areas shows the total deadweight loss of consumer and producer surplus resulting from the structure of the industry changing from perfect competition to monopoly?

There is a reduction in the market demand for the product supplied by firms operating in a perfectly competitive industry.

All other things being equal, which one of the following will happen to firms’ average and marginal revenue as a result of this change?

Figure 7 shows the average revenue and marginal revenue (AR and MR) curves and the average cost and marginal cost (AC and MC) curves for a firm in monopolistic competition in the short run.

At the profit maximising price and output the firm will

Which one of the following is the most likely result of a divorce of ownership from control in an organisation?

Figure 4 shows the short-run average costs (AC), marginal costs (MC), average revenue (AR) and marginal revenue (MR) curves for a typical firm in a monopolistically competitive market.

In the long run, market forces are most likely to cause the firm's revenue curves to

According to the kinked demand curve model of oligopoly, which one of the following box would be most likely to explain price stability in an oligopolistic market?