Monopoly — Edexcel Past Paper Questions

Using examples from Figure 2 or Extract B, discuss the likely impact of price discrimination on a firm’s profits. Use a relevant diagram to support your answer.

3.4.5 Monopoly · 3.3.1 Revenue

Tesla held an 82% market share of the electric vehicle market in the United States during the first half of 2020. (Source: adapted from https://electrek.co/2020/08/21/tesla-holds-us-ev-market-losing-federal-tax-credit/) Evaluate whether a monopoly is likely to operate efficiently. Refer to at least one monopoly of your choice.

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

3.4.5 Monopoly · 3.4.1 Efficiency

With reference to Extract A, paragraph 3, discuss whether the rail network can be considered to be a natural monopoly.

3.4.5 Monopoly

Discuss the likely benefits of price discrimination to rail passengers. Use a diagram to support your answer.

3.4.5 Monopoly · 3.3.1 Revenue

In July 2016 Apple’s share of the UK market for smartphones was 38%. Evaluate whether such a high market share for one company is in the consumer interest. Use appropriate diagrammatic analysis in your answer.

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

3.4.5 Monopoly · 3.4.1 Efficiency