NEW
Font size
Worksheets2.5 Competition - Economics OCR
Total questions: 9
Worksheet time: 5mins
1 A village is over 10 miles away from the nearest two towns. The village shop sells bread. For someone living in the village wanting to buy bread, the shop is a
competitor
monopolist
oligopolist
specialist
The prices of branded goods, such as Heinz baked beans, are usually higher than a supermarket’s own label. This is likely to be due to
higher advertising costs
higher productivity
lower average costs
lower profit margins
Firms need to survive in a market. Which of the following is an example of a suitable method to survive?
Encourage existing customers to return
Enter into competition with consumers
Provide an external economy of scale
Reduce total supply
An oligopoly differs from a competitive market because
a competitive market has larger firms than an oligopoly
a competitive market has lower barriers to entry than an oligopoly
firms in an oligopoly do not differentiate their products
firms in an oligopoly only compete on price
Which of the following is the most likely result of increased competition within a market?
A High barriers to entry
B High production costs
C Increased profits
D Lower prices
In a competitive market
the government must control the price
the item that is traded must be a good
the item that is traded must be a service
there must be many sellers
A market is an oligopoly if
each of the firms in the market has only a few customers
each of the firms in the market makes many products
most of the market is supplied by a small number of firm
there is only one firm in the market
A characteristic of a monopoly is that there is an absence of
competition
economies of scale
opportunity cost
productivity
What would be the best advice for a new business entering the restaurant market?
Cut the profits on its products
Extend the range of its products
Reduce its production costs
Spend money on advertising
