Economics 9-1 0987: Microeconomic Decision Makers Topical Past Paper Questions

What may exist in a competitive market but not in a monopoly? A many sellers B economies of scale C barriers to entry D product differentiation

What is likely to be found when there are many small firms in an industry? A There are few barriers to entry. B There is high expenditure on research and development. C There is little competition. D Very large capital costs are needed to establish a firm.

A competitive industry becomes a monopoly. What is the most likely advantage for consumers? A $ \underline{\text{consumer}} $ choice may increase B $ \underline{\text{economies}} $ of scale may reduce prices C $ \underline{\text{more}} $ goods may be produced D $ \underline{\text…