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4 marksMarket Structure

CAPE Economics Unit 1 · 2015 · Paper 2 · Question 3(c)(ii)

Analyse why a perfectly competitive firm is more efficient than a monopolistic firm.

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Other parts of this question

  1. 3(a)(i)a)Define the term 'price discrimination'.[2 marks]
  2. 3(a)(i)b)Outline ONE form of price discrimination that may be used by a firm.[2 marks]
  3. 3(a)(ii)Outline TWO conditions that are necessary for price discrimination to occur.[4 marks]
  4. 3(a)(iii)Explain ONE reason why a firm would opt to apply price discrimination.[3 marks]
  5. 3(b)List TWO types of market structures that exist in CARICOM and give ONE example of EACH.[4 marks]
  6. 3(c)(i)Illustrate, using a diagram, the profit-maximizing output and price for a monopolistic firm.[6 marks]

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