0455.3.8.1 — competitive markets The effect of having a high number of firms on price, quality, choice, profit. Note: the theory of perfect and imperfect: past paper questions
Real questions on 0455.3.8.1 — competitive markets the effect of having a high number of firms on price, quality, choice, profit. note: the theory of perfect and imperfect
The newest 20 of 33 written questions. Open one to see it on the real paper.
- 0455/02 · Specimen 2027 · Q4d[8]
Discuss whether or not consumers would benefit from more firms competing in the electric car market.
See it on the paper → - 0455/23 · May/June 2026 · Q5d[8]
Discuss whether or not advances in technology are beneficial for workers.
See it on the paper → - 0455/22 · February/March 2026 · Q4c[6]
Analyse how a competitive market differs from a monopoly market.
See it on the paper → - 0455/21 · October/November 2025 · Q5d[8]
Discuss whether or not an increase in the number of firms will benefit an economy.
See it on the paper → - 0455/23 · October/November 2025 · Q2d[8]
Discuss whether or not consumers would benefit from an increase in the number of small firms in an industry.
See it on the paper → - 0455/23 · October/November 2025 · Q5d[8]
Discuss whether or not the wages of workers employed by car firms will increase in the future.
See it on the paper → - 0455/12 · October/November 2024 · Q16[1]
A competitive industry becomes a monopoly. What is the most likely advantage for consumers?
See it on the paper → - 0455/21 · October/November 2024 · Q3c[6]
Analyse the effects of increased competition amongst firms.
See it on the paper → - 0455/23 · October/November 2024 · Q2b[4]
Explain two characteristics of monopoly.
See it on the paper → - 0455/21 · May/June 2024 · Q1g[6]
Discuss whether or not small firms benefit Nicaraguan consumers.
See it on the paper → - 0455/22 · May/June 2024 · Q4d[8]
whether or not consumers would benefit from firms buying new capital equipment.
See it on the paper → - 0455/22 · February/March 2024 · Q4b[4]
Explain two ways a firm can increase its profit.
See it on the paper → - 0455/12 · October/November 2023 · Q15[1]
In which type of industry is a firm most likely to make a large profit in the short run and in the long run?
See it on the paper → - 0455/23 · May/June 2023 · Q3d[8]
Discuss whether or not competition is harmful to a firm.
See it on the paper → - 0455/22 · October/November 2022 · Q1c[2]
why a merger between two commercial banks is a horizontal merger.
See it on the paper → - 0455/22 · October/November 2022 · Q1d[4]
two reasons why a large US commercial bank may charge a high price for its services.
See it on the paper → - 0455/23 · October/November 2022 · Q2d[8]
Discuss whether or not consumers benefit from a competitive market.
See it on the paper → - 0455/23 · October/November 2021 · Q5c[6]
Analyse the advantages that consumers may gain from a competitive market.
See it on the paper → - 0455/12 · May/June 2021 · Q1[1]
What is an advantage of competitive markets?
See it on the paper → - 0455/21 · May/June 2021 · Q5d[8]
Discuss whether or not a firm should have growth as its main objective.
See it on the paper →
What examiners said
Comprehensive responses • Most candidates demonstrated understanding of how competitive markets differ from monopoly markets, explaining several contrasting features. Limited responses • A few candidates provided only a single undeveloped comparison, offering little explanation of how the two market structures differ. • Some candidates confused a competitive market with a perfectly competitive ma...
— Examiner report, February/March 2026, 0455/22 Q4(c) (Cambridge)
The following answer is a Level 3 response that is a discussion examining both sides of the argument, with good use of different economic ideas: ‘Competition may be harmful to a firm since firms may lower the price of a product, and those firms which are unable to lower their price are forced to close down. (L1) Also, as the prices are lowered for competition, the total profit of the firm would d...
— Examiner report, May/June 2023, 0455/23 Q3(d) (Cambridge)
This was generally well answered. Most candidates seemed aware of the nature of a horizontal merger. These recognised that two commercial banks are in the same sector, tertiary, and provide the same service.
— Examiner report, October/November 2022, 0455/22 Q1(c) (Cambridge)
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