Oligopoly — Edexcel Past Paper Questions

With reference to Figure 1, explain the market structure that best describes the market for UK online streaming services.

3.4.4 Oligopoly

Discuss possible methods of price and non‑price competition that firms could use to increase the value of sales on the high street.

3.4.4 Oligopoly · 3.3.1 Revenue

With reference to Figure 1, calculate the three-firm concentration ratio for branded coffee shop chains.

3.4.4 Oligopoly

In many industries, such as banking, health insurance, internet search engines, pharmaceuticals, social media and telecommunications, there have been increases in market concentration. Evaluate the possible consequences for business decision making of increased market concentration. Refer to industries of your choice in your answer.

One of two options in Section C — candidates answered this or the other.

3.4.4 Oligopoly

In October 2017 Scania, the Volkswagen-owned truck maker, was fined €880 million (£771 million) by the European Commission for colluding with five other truck manufacturers over a 14-year period. The firms had agreed to coordinate prices after experiencing additional costs of meeting emission regulations. With reference to an industry of your choice, evaluate why some firms engage in collusive behaviour.

One of two options in Section C — candidates answered this or the other.

3.4.4 Oligopoly

With reference to Figure 1 and Extract A, explain what is meant by a ‘highly concentrated’ market for potato crisps (Extract A, lines 2–3).

3.4.4 Oligopoly

In Extract A, lines 15–16, it was suggested that some firms may respond to the advertising ban by cutting the prices of their products. Using game theory and the information provided in Figure 1 and Extract A, discuss the effects on firms of cutting prices in an oligopolistic market.

3.4.4 Oligopoly

With reference to Figure 3 and other information provided, discuss the price and non-price strategies that Starbucks may use to increase profitability.

3.4.4 Oligopoly · 3.3.1 Revenue

With reference to Figure 1 and Extract A, explain one likely reason for the change in the four-firm concentration ratio of the supermarket sector between 2010 and 2015.

3.4.4 Oligopoly