Paper 1 Question and answer

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

Discuss whether an oligopolistic firm should collude rather than compete.

Evaluate the view that the use of legislation and regulation by government is the most effective way to control monopoly power.

Discuss the view that legislation is the best way of dealing with the problem of monopoly power.

Evaluate the effectiveness of government regulations in achieving a reduction in the consumption of demerit goods.

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

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

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

Discuss the view that governments should always try to prevent the creation of barriers to entry in a market.

Evaluate the view that monopolistic competition is a more efficient market structure than monopoly.

Discuss the view that governments should always try to prevent a monopoly occurring in a market.