OCR GCSE Economics - 2.5 - Competition

Why do producers initially enter a market?

• To survive in a market

• To increase supply of goods

• Because they want to

• Because the market needs more producers

What is an oligopoly?

• Where one firm dominates a market

• Where a small number of firms dominate a market

• Where there are many firms and lots of competition

• Where producers sell products that are differentiated from one another and hence are not perfect substitutes

How is productivity measured?

• Total input/total output

• Total output/total output x 100

• Total output x total input

• Total output/total input

A rise in the standard of living can be brought about by a decrease in production

• True

• False

How can you increase productivity?

• Increase in wages

• Workers specialising

• Better healthcare

Bob and Susie are sick of the bad service of Costa and hate the high prices of Starbucks. They want to start their own coffee shop - 'Bob and Susie's Coffee!' What are their challenges in entering the market?

• Receiving a patent

• Sole ownership of necessary resources

• Start-up costs are too high

• They don't like coffee

The average price of mobile phones suddenly drops by £30. Which of these answers could not be true?

• There was a major technological advance

• The supply curve for the mobile phone industry would shift to the right

• Demand for household phones would increase

• Demand for mobile phones would increase

Demand for housing in London suddenly rises. Which of these answers is true?

• The demand curve for the housing market would shift to the left

• Unemployment would increase

• Housing prices would fall

• The demand curve for the housing market would shift to the right

A monopoly requires

• Products that are high priced

• Several close substitutes for the product

• A unique products with no close substitutes

• That the product cannot be produced by small firms

A monopoly is a market with

• Many suppliers

• No barriers to entry

• Many substitutes

• One supplier