Economics (AS & A Level) · Oct / Nov 2023 · Paper 32 · Question 4

The merger of two large firms in the Singapore market supplying taxis and private hire vehicles resulted in a single firm with 80% of the market. The remaining 20% of the market consisted of thousands of independent taxi drivers. Which statement best describes what has effectively occurred in the market structure?

1. AThe market has become monopolistically competitive.
2. BThe market has changed from an oligopoly to a monopoly.
3. CThe market has changed from perfect competition to an oligopoly.
4. DThe market remains an oligopoly.

As printed in the paper