Quelpr
6 marksMarket Structure

CAPE Economics Unit 1 · 2007 · Paper 2 · Question 3(a)(ii)

State four major assumptions of perfect competition and provide an example of a perfectly competitive industry in your country.

The mark scheme is shown once you've answered.

Practise this question

Other parts of this question

  1. 3(a)(i)Define the term 'market structure' and identify two market structures present in your country.[4 marks]
  2. 3(a)(iii)Compare two market structures other than those mentioned in part (a)(i).[10 marks]
  3. 3(b)(i)Draw a diagram showing the effect of the tax on the cigarette market.[8 marks]
  4. 3(b)(ii)a)Discuss the effect of the tax on the quantity of cigarettes bought and sold.[3 marks]
  5. 3(b)(ii)b)Discuss the effect of the tax on the price paid by the buyer.[3 marks]
  6. 3(b)(ii)c)Discuss the effect of the tax on the net price received by the seller after tax remittance.[3 marks]
  7. 3(c)(i)Define 'deadweight loss' and shade the region representing the deadweight loss of the cigarette tax on your diagram from (b)(i).[5 marks]
  8. 3(c)(ii)Define consumer surplus and producer surplus, indicating on the diagram the lost consumer surplus and producer surplus.[8 marks]

More practice: the rest of this paper · more Market Structure questions · all CAPE Economics Unit 1 past papers