Cambridge IGCSE · Economics (0455)

Market structure: Practice Questions

5 multiple-choice questions marked as you go, and 5 written questions with worked solutions. All on Market structure.

10 questions20 marksFree, no account

Question 1

1 mark

Which characteristic is common to all firms in a competitive market with a high number of participants?

Question 2

1 mark

A monopoly is often considered less efficient than a competitive market. Which of the following is an advantage of a monopoly for a consumer?

Question 3

1 mark

Why might a monopoly result in a market failure compared to a competitive market?

Question 4

1 mark

In a competitive market, what is a likely consequence of a significant increase in the number of firms producing a similar product?

Question 5

1 mark

Which characteristic is unique to a monopoly market structure compared to a competitive market?

Question 6

2 marks

Identify two characteristics of a competitive market that differ from a monopoly.

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Question 7

3 marks

Explain how the high number of firms in a competitive market affects the profit levels of individual firms in the long run.

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Question 8

2 marks

Identify two characteristics of a monopoly market.

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Question 9

4 marks

A large economy has a variety of market structures ranging from many small retail shops to a single national rail provider.

(a) Identify two characteristics of a competitive market.
(b) Explain how the presence of a high number of firms in a competitive market affects the price and choice available to consumers.

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Question 10

4 marks

Market structure describes the characteristics of a market, such as the number of firms and the nature of the products sold.

(a) Identify two characteristics of a competitive market.
(b) Explain one reason why a monopoly might be able to charge higher prices than a firm in a competitive market.

Write your answer out first, then check it against the worked solution.

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