👑Market Structures and Competition  Essays

Discuss whether or not having fewer firms in a market will benefit consumers.

Explain what economists mean by collusion and consider the view that collusion will occur only in a certain type of market structure.

Explain why public goods would not be supplied in a market economic system.

With the aid of a diagram, explain the consequences for consumers and producers of introducing a minimum price in the market for a product. [8]

Discuss whether or not small firms are more likely to go out of business than large firms.

Identify objectives of private sector firms.

Explain reasons why a merger may result in higher prices for consumers.

Discuss whether or not a government should encourage firms to merge.

Explain how a firm maximises its profit in perfect competition.

Discuss whether profit maximisation is the best strategy in the long run for firms in different market structures.

In Pakistan there is a limited choice of cars to buy. The country has a population of approximately 190 million but only about 120 000 cars a year are produced there. The firms producing cars in Pakistan are protected from foreign competition by a range of methods of trade protection.

Analyse the social costs created by car production and car use. [6]

Indonesia’s output is influenced by its factors of production. A production possibility curve diagram can be used to show this relationship between resources and output. Indonesia does have extensive fishing waters but does not actually catch many fish. Most of its fishing firms are small and they compete against much larger foreign firms. These larger foreign firms have been attracted into Indonesia’s waters because of increasing demand for fish. The price elasticity of demand for different types of fish has changed in the last few years.

Discuss whether small firms can compete successfully against large firms.