CAIE A-Level Economics 7.6.5 Concentration ratio

CAIE A-Level Economics 7.6.5 Concentration ratio
Cambridge International AS & A Level Economics 9708 syllabus for exams in 2026, 2027 and 20282026–2028

Practise calculating and interpreting concentration ratios from market-share tables to judge market power and competition.

How this is tested

  • calculate a four-firm or three-firm concentration ratio from market-share data
  • interpret changes in concentration ratios to infer market power or competition over time

Question 6

[Maximum number: 1]

The tables show the market share of the five largest firms in two separate industries.

Table for Question 6 — CAIE A-Level Economics
Table for Question 6 — CAIE A-Level Economics

What does this data suggest is most likely?

A

Industry X is highly contestable.

B

Industry X is oligopolistic.

C

Industry Z has a lower level of output than industry X .

D

Industry Z is less competitive than industry X .