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Market Structure · CAPE Economics Unit 1

95 past-paper questions on Market Structure, part of Market Structure, Market Failure and Intervention, from every CAPE Economics Unit 1 paper on Quelpr.

Practise Market Structure
  1. 6(a)4 marks· CAPE Economics Unit 1 · 2005 · Paper 1State TWO ways in which a firm operating under monopolistic competition differs from a monopolist.
  2. 6(b)2 marks· CAPE Economics Unit 1 · 2005 · Paper 1Explain the statement: 'Monopolistic competition produces inefficiently even in the long-run because it has excess capacity.'
  3. 7(a)4 marks· CAPE Economics Unit 1 · 2005 · Paper 1Distinguish between price leadership in an oligopoly and a formal cartel arrangement.
  4. 7(b)2 marks· CAPE Economics Unit 1 · 2005 · Paper 1Provide an example of a successful cartel arrangement and explain why it is considered successful.
  5. 8(a)4 marks· CAPE Economics Unit 1 · 2005 · Paper 1Explain how oligopolistic firms expect rival firms to react to price increases versus price decreases according to the kinked demand curve model.
  6. 8(b)2 marks· CAPE Economics Unit 1 · 2005 · Paper 1Deduce what these competitor responses imply about the price elasticity of demand above and below the current price.
  7. 11(a)2 marks· CAPE Economics Unit 1 · 2005 · Paper 1Calculate the total cost of production for Jack's Inc.
  8. 1(f)12 marks· CAPE Economics Unit 1 · 2005 · Paper 2Draw a diagram showing the marginal cost curve (MC) and the price ($200) of the product.
  9. 1(g)6 marks· CAPE Economics Unit 1 · 2005 · Paper 2Identify what level of output the firm will produce and state how you arrived at your answer.
  10. 3(a)3 marks· CAPE Economics Unit 1 · 2005 · Paper 2Define the term 'market structure'.
  11. 3(b)8 marks· CAPE Economics Unit 1 · 2005 · Paper 2List FOUR types of market structures that exist in the CARICOM region and give ONE example of EACH type.
  12. 3(c)25 marks· CAPE Economics Unit 1 · 2005 · Paper 2Select TWO of the market structures listed in (b) and compare them with respect to: (i) Barriers to entry, (ii) Number of firms and buyers, (iii) Nature of the goods they produce, (iv) Market power and control over…
  13. 3(d)(ii)8 marks· CAPE Economics Unit 1 · 2005 · Paper 2Discuss the efficiency with which resources are used in: (a) a monopoly, (b) perfect competition.
  14. 6(a)2 marks· CAPE Economics Unit 1 · 2006 · Paper 1Define the term 'market structure'.
  15. 6(b)2 marks· CAPE Economics Unit 1 · 2006 · Paper 1In a market there are many firms producing identical goods. Explain whether this is a case of monopolistic competition or perfect competition.
  16. 6(c)2 marks· CAPE Economics Unit 1 · 2006 · Paper 1In which market structure are there price leaders and price followers?
  17. 7(a)(i)1 mark· CAPE Economics Unit 1 · 2006 · Paper 1State the level of output at which the firm is producing.
  18. 7(a)(ii)1 mark· CAPE Economics Unit 1 · 2006 · Paper 1Identify which intersection, A, B, C or D, indicates the output level.
  19. 7(b)2 marks· CAPE Economics Unit 1 · 2006 · Paper 1Explain whether the firm is likely to experience normal profits, economic profits, or a loss.
  20. 7(c)2 marks· CAPE Economics Unit 1 · 2006 · Paper 1Explain what will happen to output in the long run.
  21. 8(a)2 marks· CAPE Economics Unit 1 · 2006 · Paper 1Define the term 'multinational corporation'.
  22. 8(b)2 marks· CAPE Economics Unit 1 · 2006 · Paper 1List TWO resources that a multinational corporation may contribute to your country or to any member state of CARICOM.
  23. 8(c)2 marks· CAPE Economics Unit 1 · 2006 · Paper 1State TWO reasons why a multinational corporation might want to establish itself in any CARICOM country.
  24. 9(c)(i)1 mark· CAPE Economics Unit 1 · 2006 · Paper 1State the type of market structure in an industry that is likely to produce greater output.
  25. 9(c)(ii)1 mark· CAPE Economics Unit 1 · 2006 · Paper 1State the type of market structure in an industry that is likely to charge a higher price.
  26. 10(a)2 marks· CAPE Economics Unit 1 · 2006 · Paper 1List TWO measures of industrial concentration.
  27. 10(b)2 marks· CAPE Economics Unit 1 · 2006 · Paper 1Explain how ONE of the measures listed in 10(a) is calculated.
  28. 11(a)2 marks· CAPE Economics Unit 1 · 2006 · Paper 1Explain briefly the difference between interest and profits.
  29. 3(a)2 marks· CAPE Economics Unit 1 · 2006 · Paper 2Define the term 'market structure'.
  30. 3(b)8 marks· CAPE Economics Unit 1 · 2006 · Paper 2State four assumptions on which perfect competition is based.
  31. 3(c)(i)6 marks· CAPE Economics Unit 1 · 2006 · Paper 2State three types of market structures other than perfect competition, and give an example of each.
  32. 3(c)(ii)6 marks· CAPE Economics Unit 1 · 2006 · Paper 2Explain how each of the types mentioned in (c)(i) differs from perfect competition.
  33. 3(d)6 marks· CAPE Economics Unit 1 · 2006 · Paper 2An industry's long-run average cost is falling even after demand is met. Describe the type of market structure that this industry is likely to represent.
  34. 3(e)(i)16 marks· CAPE Economics Unit 1 · 2006 · Paper 2Draw a diagram showing this situation. Label the axes, the cost and revenue curves, and indicate the profit made by firms.
  35. 3(e)(ii)6 marks· CAPE Economics Unit 1 · 2006 · Paper 2Explain what will happen to profit, the number of firms, and output in the long run.
  36. 3(a)(i)4 marks· CAPE Economics Unit 1 · 2007 · Paper 2Define the term 'market structure' and identify two market structures present in your country.
  37. 3(a)(ii)6 marks· CAPE Economics Unit 1 · 2007 · Paper 2State four major assumptions of perfect competition and provide an example of a perfectly competitive industry in your country.
  38. 3(a)(iii)10 marks· CAPE Economics Unit 1 · 2007 · Paper 2Compare two market structures other than those mentioned in part (a)(i).
  39. 3(a)12 marks· CAPE Economics Unit 1 · 2008 · Paper 2Compare and contrast THREE MAIN characteristics of perfect competition and monopolistic competition.
  40. 3(b)(i)6 marks· CAPE Economics Unit 1 · 2008 · Paper 2Competitive behaviour
  41. 3(b)(ii)6 marks· CAPE Economics Unit 1 · 2008 · Paper 2Output determination
  42. 3(b)(iii)6 marks· CAPE Economics Unit 1 · 2008 · Paper 2Pricing behaviour
  43. 3(c)20 marks· CAPE Economics Unit 1 · 2008 · Paper 2Evaluate the performance of a perfect market and a monopolistic market in terms of profit and efficiency.
  44. 4(b)(i)5 marks· CAPE Economics Unit 1 · 2008 · Paper 2Explain what is meant by a 'natural monopoly'.
  45. 3(a)(i)2 marks· CAPE Economics Unit 1 · 2009 · Paper 2Define the term 'market structure'.
  46. 3(a)(ii)4 marks· CAPE Economics Unit 1 · 2009 · Paper 2Identify four types of market structures.
  47. 3(a)(iii)16 marks· CAPE Economics Unit 1 · 2009 · Paper 2Outline four characteristics of the most efficient type of market structure.
  48. 3(b)(i)16 marks· CAPE Economics Unit 1 · 2009 · Paper 2Compare the characteristics of the monopolistic market structure with those of the perfectly competitive market structure.
  49. 3(b)(ii)12 marks· CAPE Economics Unit 1 · 2009 · Paper 2Compare the conduct and performance of the monopolistic and the perfectly competitive market structure in terms of output, price and profit in the short and long run.
  50. 3(a)(i)9 marks· CAPE Economics Unit 1 · 2010 · Paper 2Compare the characteristics of monopolistic competition with those of oligopoly, focusing on the number of firms, entry and exit barriers, and the nature of the product.
  51. 3(a)(ii)4 marks· CAPE Economics Unit 1 · 2010 · Paper 2Assess the role of advertising in monopolistic competition.
  52. 3(b)12 marks· CAPE Economics Unit 1 · 2010 · Paper 2With the aid of a short-run diagram and a long-run diagram, explain output level, pricing (relative to AR, ATC, and MC), and the profits of the firm in monopolistic competition in both the short run and the long run.
  53. 3(a)(i)2 marks· CAPE Economics Unit 1 · 2011 · Paper 2Explain the concept of 'market structure'.
  54. 3(a)(ii)4 marks· CAPE Economics Unit 1 · 2011 · Paper 2Identify four types of market structures.
  55. 3(a)(iii)4 marks· CAPE Economics Unit 1 · 2011 · Paper 2List four characteristics used to distinguish among market structures.
  56. 3(b)(i)6 marks· CAPE Economics Unit 1 · 2011 · Paper 2Compare monopoly and monopolistic competition in the short run and long run in terms of their major characteristics.
  57. 3(b)(ii)3 marks· CAPE Economics Unit 1 · 2011 · Paper 2Compare monopoly and monopolistic competition in the short run and long run in terms of conduct.
  58. 3(b)(ii)3 marks· CAPE Economics Unit 1 · 2011 · Paper 2Compare monopoly and monopolistic competition in the short run and long run in terms of profitability.
  59. 3(b)(iv)3 marks· CAPE Economics Unit 1 · 2011 · Paper 2Compare monopoly and monopolistic competition in the short run and long run in terms of resource-use efficiency.
  60. 3(a)(i)3 marks· CAPE Economics Unit 1 · 2012 · Paper 2State the difference between 'normal profit' and 'positive economic profit' (abnormal profit).
  61. 3(a)(ii)2 marks· CAPE Economics Unit 1 · 2012 · Paper 2Explain the concept of 'market structure'.
  62. 3(b)8 marks· CAPE Economics Unit 1 · 2012 · Paper 2Distinguish among the four major market structures based on: the number of firms in the industry, the product, barriers to entry, and control over price.
  63. 3(c)(i)a)4 marks· CAPE Economics Unit 1 · 2012 · Paper 2Calculate the Four-Firm Concentration Ratio for the industry.
  64. 3(c)(i)b)4 marks· CAPE Economics Unit 1 · 2012 · Paper 2Calculate the Herfindahl-Hirschman Index for the industry.
  65. 3(c)(ii)4 marks· CAPE Economics Unit 1 · 2012 · Paper 2Interpret the two measures of industrial concentration calculated in relation to market structures.
  66. 3(a)8 marks· CAPE Economics Unit 1 · 2013 · Paper 2Outline FOUR major characteristics of perfect competition.
  67. 3(b)8 marks· CAPE Economics Unit 1 · 2013 · Paper 2Compare the characteristics outlined in (a) with those of monopolistic competition.
  68. 3(c)(i)3 marks· CAPE Economics Unit 1 · 2013 · Paper 2Compare monopolistic competition and perfect competition in terms of the way they compete with other businesses.
  69. 3(c)(ii)3 marks· CAPE Economics Unit 1 · 2013 · Paper 2Compare monopolistic competition and perfect competition in terms of their profit in the short run and long run.
  70. 3(c)(iii)3 marks· CAPE Economics Unit 1 · 2013 · Paper 2Compare monopolistic competition and perfect competition in terms of the efficiency with which they use resources.
  71. 3(b)(ii)3 marks· CAPE Economics Unit 1 · 2014 · Paper 2Identify the market structure under which the firm operates, justifying your answer.
  72. 3(c)5 marks· CAPE Economics Unit 1 · 2014 · Paper 2Analyse how a specific characteristic of perfect competition guarantees that, in the long run, perfectly competitive firms earn zero economic profits.
  73. 3(a)(i)a)2 marks· CAPE Economics Unit 1 · 2015 · Paper 2Define the term 'price discrimination'.
  74. 3(a)(i)b)2 marks· CAPE Economics Unit 1 · 2015 · Paper 2Outline ONE form of price discrimination that may be used by a firm.
  75. 3(a)(ii)4 marks· CAPE Economics Unit 1 · 2015 · Paper 2Outline TWO conditions that are necessary for price discrimination to occur.
  76. 3(a)(iii)3 marks· CAPE Economics Unit 1 · 2015 · Paper 2Explain ONE reason why a firm would opt to apply price discrimination.
  77. 3(b)4 marks· CAPE Economics Unit 1 · 2015 · Paper 2List TWO types of market structures that exist in CARICOM and give ONE example of EACH.
  78. 3(c)(i)6 marks· CAPE Economics Unit 1 · 2015 · Paper 2Illustrate, using a diagram, the profit-maximizing output and price for a monopolistic firm.
  79. 3(c)(ii)4 marks· CAPE Economics Unit 1 · 2015 · Paper 2Analyse why a perfectly competitive firm is more efficient than a monopolistic firm.
  80. 3(a)3 marks· CAPE Economics Unit 1 · 2016 · Paper 2Identify THREE goals of a firm.
  81. 3(b)(i)3 marks· CAPE Economics Unit 1 · 2016 · Paper 2Explain the four firm concentration ratio as a measure of industrial concentration.
  82. 3(b)(ii)3 marks· CAPE Economics Unit 1 · 2016 · Paper 2Explain the Herfindahl-Hirschman Index as a measure of industrial concentration.
  83. 3(c)(i)4 marks· CAPE Economics Unit 1 · 2016 · Paper 2Outline TWO key features of the oligopolistic market structure.
  84. 3(c)(ii)4 marks· CAPE Economics Unit 1 · 2016 · Paper 2Assess how any ONE of the two features mentioned in (c)(i) can influence the mobile phone industry.
  85. 3(d)8 marks· CAPE Economics Unit 1 · 2016 · Paper 2Discuss, with the aid of the kinked demand curve (label elastic and inelastic portions), the pricing and output decision of the oligopolistic firm.
  86. 4(a)3 marks· CAPE Economics Unit 1 · 2016 · Paper 2Identify THREE characteristics of the perfectly competitive market structure.
  87. 4(b)6 marks· CAPE Economics Unit 1 · 2016 · Paper 2Suggest TWO reasons why the perfectly competitive market structure is considered the most efficient market structure.
  88. 4(c)8 marks· CAPE Economics Unit 1 · 2016 · Paper 2Compare, with the aid of a diagram, the pricing and output decision of the perfectly competitive firm and the monopolist.
  89. 2(a)(i)2 marks· CAPE Economics Unit 1 · 2017 · Paper 2Outline ONE barrier to entry.
  90. 2(a)(ii)3 marks· CAPE Economics Unit 1 · 2017 · Paper 2Using the information in Table 2, calculate the Herfindahl-Hirschman Index (HHI).
  91. 2(b)12 marks· CAPE Economics Unit 1 · 2017 · Paper 2Compare, with the aid of diagrams, the productive efficiency and economic profit of a perfectly competitive firm and a monopolistically competitive firm in the long run.
  92. 2(b)6 marks· CAPE Economics Unit 1 · 2018 · Paper 2Explain the role of advertising in monopolistic competition and perfect competition.
  93. 2(d)9 marks· CAPE Economics Unit 1 · 2018 · Paper 2With the aid of a diagram, analyse the pricing and output decision of the monopolist.
  94. 2(a)(i)2 marks· CAPE Economics Unit 1 · 2021 · Paper 2Define the term 'economic loss'.
  95. 2(a)(ii)2 marks· CAPE Economics Unit 1 · 2021 · Paper 2Define the term 'abnormal profit'.

Related topics in Market Structure, Market Failure and Intervention