DP Economics Questionbank

Discuss the view that competitive markets will always achieve allocative efficiency.

Discuss whether price will always be lower and output will always be higher in perfect competition compared to monopoly.

Using a theory of the firm diagram, explain the output and pricing decision of M-Kopa if it chooses to pursue the goal of revenue maximization (paragraph [6]).

Evaluate the view that monopoly is an undesirable market structure as it fails to achieve productive and allocative efficiency.

Examine the role of barriers to entry in making monopoly a less desirable market structure than perfect competition.

Discuss the view that barriers to entry in a monopoly will always lead to abnormal profits in the long run.

State two assumed characteristics of a monopoly.

Using Figure 3, calculate the economic profit when Firm B is maximizing its profits.

Using Figure 3, calculate the total revenue when Firm B is maximizing its revenue.

Explain how a natural monopoly may arise.

Discuss the consequences of a perfectly competitive market becoming a monopoly market.

Using real-world examples, discuss the impact of large firms having significant market power.