Monopoly and Monopoly Power — AQA Past Paper Questions

Extract B (lines 9–10) states: ‘After the monopoly’s patent expires, other companies can manufacture and market the same drug under its generic name, usually at a lower price.’ With the help of a diagram, explain why prices of pharmaceutical drugs supplied by a monopoly are likely to be higher than in markets which are more competitive.

1.5.6 Monopoly and Monopoly Power · 1.5.9 Contestable Markets

Discuss whether governments should consider increasing the regulation and taxation of technology firms which have acquired significant global monopoly power.

1.5.6 Monopoly and Monopoly Power · 1.8.7 Competition Policy

Extract E (lines 10–11) describes the British railway sector as a ‘natural monopoly’, which was split up into ‘no less than 100 pieces’ when it was privatised. With the help of a diagram, explain why breaking up a natural monopoly in rail may affect long-run average costs.

1.5.6 Monopoly and Monopoly Power

Explain how the data in Extract A show that the market power of the Big Four banks is weakening against competition from smaller rivals.

1.5.6 Monopoly and Monopoly Power · 1.5.8 The Dynamics of Competition

Extract B (lines 12–14) states that ‘The Universal Postal Service obligations require Royal Mail to deliver letters and parcels to all parts of the country six days a week’. With the help of a monopoly diagram, explain how the Universal Postal Service obligations are likely to affect Royal Mail’s costs and profits.

1.5.6 Monopoly and Monopoly Power