What is likely to be found when there are many small firms in an industry?
There are few barriers to entry.
There is high expenditure on research and development.
There is little competition.
Very large capital costs are needed to establish a firm.
A
What would make the existence of a monopoly market more likely?
consumers prefer a variety of choice in products
significant economies of scale can be achieved
there are low barriers to entry and exit for firms
there are no restrictions on international trade
B
A market changes from being very competitive to being a monopoly.
What is likely to happen to output and price in this market?
output
price
decrease
decrease
decrease
increase
increase
decrease
increase
increase
B