Types of markets
3.7What the syllabus asks of you
- Competitive markets: characteristics, advantages and disadvantages of competitive markets
- Competitive markets: effect of having a high number of firms on price, quality, choice, profit Note: diagrams / perfect or imperfect competition theory are not required. continued
- Monopoly markets: characteristics, advantages and disadvantages of monopoly markets
- Monopoly markets: effect of having only one firm on price, quality, choice, profit Note: diagrams are not required.
Read the notes first
Chapter 3: Types of markets
Drill this topic
Every question on Types of markets, untimed, marked as you go.
Make a worksheet
Choose the years and how many questions, then print it with the answers on separate pages.
25 questions
1May / June 2026 · Paper 11 · Q16Show mark scheme →
Aby encouraging mergers in the private sector
Bby establishing nationalised industries
Cby promoting the benefits of economies of scale
Dby reducing barriers to entry into an industry
Mark scheme
2May / June 2026 · Paper 12 · Q16Show mark scheme →
Amany sellers
Beconomies of scale
Cbarriers to entry
Dproduct differentiation
Mark scheme
3Oct / Nov 2025 · Paper 12 · Q16Show mark scheme →
AThere are few barriers to entry.
BThere is high expenditure on research and development.
CThere is little competition.
DVery large capital costs are needed to establish a firm.
Mark scheme
4Oct / Nov 2025 · Paper 13 · Q16Show mark scheme →
Aconsumers prefer a variety of choice in products
Bsignificant economies of scale can be achieved
Cthere are low barriers to entry and exit for firms
Dthere are no restrictions on international trade
Mark scheme
5May / June 2025 · Paper 12 · Q16Show mark scheme →
Aincrease: barriers to entry; decrease: economies of scale
Bincrease: consumer choice; decrease: prices
Cincrease: long-run profits; decrease: competition
Dincrease: output; decrease: market share
Mark scheme
6Oct / Nov 2024 · Paper 12 · Q16Show mark scheme →
Aconsumer choice may increase
Beconomies of scale may reduce prices
Cmore goods may be produced
Dprices may be set by market forces
Mark scheme
7May / June 2024 · Paper 11 · Q16Show mark scheme →
Abarriers to entry: decrease; economies of scale: decrease; the size of the firm: increases
Bbarriers to entry: decrease; economies of scale: increase; the size of the firm: decreases
Cbarriers to entry: increase; economies of scale: decrease; the size of the firm: decreases
Dbarriers to entry: increase; economies of scale: increase; the size of the firm: increases
Mark scheme
8May / June 2024 · Paper 12 · Q16Show mark scheme →
Aprice higher, profit higher
Bprice higher, profit lower
Cprice lower, profit higher
Dprice lower, profit lower
Mark scheme
9Oct / Nov 2023 · Paper 12 · Q15Show mark scheme →
Amany / high
Bmany / low
Cone / high
Done / low
Mark scheme
10May / June 2022 · Paper 11 · Q11Show mark scheme →
Amany buyers | single seller
Bmany sellers | single buyer
Csingle buyer | many buyers
Dsingle seller | many sellers
Mark scheme
11May / June 2022 · Paper 12 · Q10Show mark scheme →
Abarriers to entry
Bdiseconomies of scale
Celastic demand for the product
Dhigh number of substitutes for the product
Mark scheme
12May / June 2021 · Paper 11 · Q15Show mark scheme →
Ahigh barriers to entry, few sellers
Bhigh barriers to entry, many sellers
Clow barriers to entry, few sellers
Dlow barriers to entry, many sellers
Mark scheme
13May / June 2021 · Paper 12 · Q1Show mark scheme →
ACompetition causes inequalities of wealth.
BCompetition encourages the efficient use of resources.
CThe economic problem of scarcity is eliminated.
DThe right quantity of merit goods is guaranteed.
Mark scheme
14May / June 2021 · Paper 12 · Q15Show mark scheme →
Abarriers to entry into rail services
Bcompetition from public road transport
Cgovernment policy encouraging monopoly power
Dhigh costs of maintaining rail tracks
Mark scheme
15Oct / Nov 2020 · Paper 13 · Q14Show mark scheme →
Amany buyers and many sellers
Bmany buyers and single seller
Csingle buyer and many sellers
Dsingle buyer and single seller
Mark scheme
16May / June 2020 · Paper 11 · Q15Show mark scheme →
Aby encouraging mergers in the private sector
Bby establishing nationalised industries
Cby promoting the benefits of economies of scale
Dby reducing barriers to entry into an industry
Mark scheme
17Oct / Nov 2019 · Paper 12 · Q13Show mark scheme →
Abarriers to entry: high; economies of scale: possible
Bbarriers to entry: high; economies of scale: impossible
Cbarriers to entry: low; economies of scale: possible
Dbarriers to entry: low; economies of scale: impossible
Mark scheme
18Oct / Nov 2018 · Paper 12 · Q12Show mark scheme →
AThey achieve economies of scale.
BThey are price takers.
CThey make use of non-price competition.
DThey produce differentiated products.
Mark scheme
19Oct / Nov 2018 · Paper 13 · Q12Show mark scheme →
Aidentical, many, many, price taker
Bidentical, one, many, price maker
Csimilar, many, many, price taker
Dunique, few, few, price maker
Mark scheme
20May / June 2018 · Paper 11 · Q12Show mark scheme →
Afreedom of entry
Bmany buyers
Cmany sellers
Dperfectly elastic demand curve
Mark scheme
21May / June 2018 · Paper 12 · Q12Show mark scheme →
Aabsence of competitors
Bnon-price competition
Cone dominant firm
Dprice taker
Mark scheme
22May / June 2017 · Paper 11 · Q14Show mark scheme →
AA monopoly will earn a higher rate of profit.
BA monopoly will gain a greater share of the market.
CA monopoly will offer a wider choice to the consumer.
DA monopoly will operate on a larger scale of production.
Mark scheme
23May / June 2017 · Paper 12 · Q14Show mark scheme →
AA monopoly will earn a higher rate of profit.
BA monopoly will gain a greater share of the market.
CA monopoly will offer a wider choice to the consumer.
DA monopoly will operate on a larger scale of production.
Mark scheme
24Oct / Nov 2016 · Paper 13 · Q13Show mark scheme →
AIt has no information about market price.
BIts output is too small to have any effect on market equilibrium.
CThere are few barriers to entry.
DThere are only a few firms in the industry.
Mark scheme
25May / June 2016 · Paper 11 · Q13Show mark scheme →
Athe ability to exclude rivals
Bthe benefit of internal economies of scale
Cthe problem of diseconomies of scale
Dthe wish to maximise profits
Mark scheme