Paper 1 practice questions

1. (a) Explain the difference between cost curves in the short-run and long-run. [10 marks]
(b) Using real world examples, evaluate the view that firms in perfect competition will offer
greater benefits to consumers than firms in monopoly. [15 marks]
2. (a) Explain why many oligopolies find it difficult to change their prices? [10 marks]
(b) Using real world examples, evaluate the view that perfectly competitive industries are
more efficient than monopoly market structures. [15 marks]
3. (a) Explain different ways than a monopoly may emerge. [10 marks]
(b) Using real world examples, evaluate whether a monopoly or perfectly competitive market
offers the better deal for consumers. [15 marks]
4. (a) Explain how the creation of a monopoly may increase the level of welfare loss in a
society. [10 marks]
(b) Using real world examples, discuss the effectiveness of different government policies
aimed at reducing the power of monopolies? [15 marks]
5. (a) Explain how oligopoly firms increase their market share at the expense of their rivals.
[10 marks]
(b) Using real world examples, evaluate the view that firms in an oligopoly enjoy more
benefits from the structure than consumers. [15 marks]