4 questions on Market Structure, Static Efficiency, Dynamic Efficiency and Resource Allocation (AQA specification 1.5.10) from the A-Level Economics papers, 2017–2023. Every question links to the official mark scheme at the page its answer begins on.
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Explain why, in long-run equilibrium, monopolistically competitive markets are neither productively nor allocatively efficient.
1.5.4 Monopolistic Competition · 1.5.10 Market Structure and Efficiency
Explain how perfect competition should lead to outcomes which are both productively and allocatively efficient.
1.5.3 Perfect Competition · 1.5.10 Market Structure and Efficiency
Evaluate the view that a firm making low profits must be inefficiently managed.
Explain how the data in Extract A (Figure 2) show that the UK parcels delivery market is displaying dynamic efficiency.
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