Types of markets — Paper 1 · IGCSE Economics (9-1) 0987

15 How is a government most likely to prevent the growth of monopolies? A by encouraging mergers in the private sector B by establishing nationalised industries C by promoting the benefits of economies of scale D by reducing barriers to entry into an industry

1 marks

Answer: D

This question in 0987/11 May/June 2020

15 Which market is likely to be the most competitive? barriers number to entry of sellers A high few B high many C low few D low many

1 marks

Answer: D

This question in 0987/11 May/June 2021

15 A private sector firm is the only supplier of rail services between two cities. What will stop the firm charging very high ticket prices? A barriers to entry into rail services B competition from public road transport C government policy encouraging monopoly power D high costs of maintaining rail tracks

1 marks

Answer: B

This question in 0987/12 May/June 2021

15 Two car manufacturers agree to merge. Which outcome would be a disadvantage for customers? A increased capital for research and development B lower average costs through economies of scale C reduced range of vehicles produced D use of a wider range of marketing information

1 marks

Answer: C

This question in 0987/12 Oct/Nov 2021

11 Which row shows an essential characteristic of competitive markets and monopoly markets? competitive markets monopoly markets A many buyers single seller B many sellers single buyer C single buyer many buyers D single seller many sellers

1 marks

Answer: A

This question in 0987/11 May/June 2022

10 What could cause profits to be high in a monopoly market? A barriers to entry B diseconomies of scale C elastic demand for the product D high number of substitutes for the product

1 marks

Answer: A

This question in 0987/12 May/June 2022

15 In which type of industry is a firm most likely to make a large profit in the short run and in the long run? number of firms barriers to entry in the industry into the industry A many high B many low C one high D one low

1 marks

Answer: C

This question in 0987/12 Oct/Nov 2023

16 What are the features of a highly competitive market when compared with a monopoly market? price profit A higher higher B higher lower C lower higher D lower lower

1 marks

Answer: D

This question in 0987/12 May/June 2024

16 A competitive industry becomes a monopoly. What is the most likely advantage for consumers? A consumer choice may increase B economies of scale may reduce prices C more goods may be produced D prices may be set by market forces

1 marks

Answer: B

This question in 0987/12 Oct/Nov 2024

16 If a very competitive market becomes a monopoly, what will be likely to increase and what will be likely to decrease? increase decrease A barriers to entry economies of scale B consumer choice prices C long-run profits competition D output market share

1 marks

Answer: C

This question in 0987/12 May/June 2025

16 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.

1 marks

Answer: A

This question in 0987/12 Oct/Nov 2025