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6 marksMarket Structure

CAPE Economics Unit 1 · 2016 · Paper 2 · Question 4(b)

Suggest TWO reasons why the perfectly competitive market structure is considered the most efficient market structure.

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Other parts of this question

  1. 4(a)Identify THREE characteristics of the perfectly competitive market structure.[3 marks]
  2. 4(c)Compare, with the aid of a diagram, the pricing and output decision of the perfectly competitive firm and the monopolist.[8 marks]
  3. 4(d)(i)Explain how market failure is caused by a monopolist.[3 marks]
  4. 4(d)(ii)Assess governments' response to market failure caused by monopolies.[5 marks]

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