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Edexcel IGCSE Economics 1.2.4.a advantages and disadvantages of competition

Edexcel IGCSE Economics 1.2.4.a advantages and disadvantages of competition
Edexcel IGCSE Economics syllabusEconomics 4EC1First assessment 2019

Practise competition-effect questions by defining innovation and judging price, choice, quality or advertising impacts for customers and firms.

How this is tested

  • Explain how rival firms may improve choice, quality or innovation for consumers.
  • Evaluate competition using customer impacts in a restaurant or transport context.
  • State firm disadvantages from competition, such as lower profit or advertising costs.

Question 4(c)

[Maximum number: 12]

Figure 4 shows the Production Possibility Curve (PPC) for an economy making capital goods and consumer goods.

Figure 4

Figure 4

With reference to the data above and your knowledge of economics, evaluate the likely impact of competition on restaurant customers in Dahab.