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3 questions on Monopolistic Competition (AQA specification 1.5.4) 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 price and output are determined for a firm in a monopolistically competitive market, in both the short run and the long run.
Evaluate the view that government regulation of monopolistically competitive markets is unnecessary, and that polices to encourage competition and prevent the abuse of monopoly power should focus entirely on oligopolies and monopolies.
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