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IGCSE Economics1.2.4 Business competitionTopic Practice

1.2.4 Business competition

Edexcel IGCSE Economics 1.2.4 Business competition question practice helps you revise this syllabus point with the course map in view. Use this page to focus on one topic, check the style of questions available, and connect each attempt back to the knowledge area it is testing.

EduNinja keeps Economics practice aligned to Edexcel, so you can move from topic review into exam-style question bank work without losing the syllabus structure. Start with a small set, mark the weak steps, then return to nearby topic links when a definition, graph, calculation, or explanation needs repair.

Question 1

Question 1(a)

(a)

Which one of the following is a feature of an oligopoly?

A

Large firms dominate

B

Unique product

C

One firm dominates

D

No barriers to entry

[ 1 ]

Question 1(h)

(b)

Robert is the only business specialising in handmade door signs in the local area.

Explain one disadvantage for customers of Robert being the only local firm specialising in handmade door signs.

[ 3 ]

Question 1(i)

(c)

Despite his success, Robert has decided to keep his business small and not expand.

With reference to the data in 'Small but successful' and your knowledge of economics, analyse why Robert might have decided not to expand his business.

[ 6 ]

Question 1

Question 1(e)

(a)

Define the term monopoly.

[ 1 ]

Question 1(i)

(b)

With reference to the data above and your knowledge of economics, analyse why Bupa may have decided to operate in a wider range of markets.

[ 6 ]

Question 1(e)

[Maximum number: 1]

Define the term niche market.

Question 1(e)

[Maximum number: 1]

Define the term unique product.

Question 1(d)

[Maximum number: 1]

State one main feature of an oligopoly.

Question 1(i)

[Maximum number: 6]

Anastasia runs a martial arts club in District 16 of Budapest, Hungary. She offers classes to children and to adults. There are six classes a week. Following a successful few years, Anastasia is considering growing the business by opening a second club in another district of Budapest.

With reference to the data above and your knowledge of economics, analyse two possible factors influencing Anastasia's decision to open a second club.

Question 1(e)

[Maximum number: 1]

Define the term takeover.

Question 1(e)

[Maximum number: 1]

Define the term price-maker.

Question 1

Question 1(h)

(a)

A study in the US concluded that mergers of pharmaceutical firms often benefit consumers.

Explain one reason why consumers may benefit as a result of mergers in the pharmaceutical industry.

[ 3 ]

Question 1(i)

(b)

The US Government is taking legal action against six major firms that provide accommodation for rent. The firms are accused of collusion. Over 1 million properties are affected, at a time when tenants are struggling to afford rent.

With reference to the data above and your knowledge of economics, analyse the possible disadvantages faced by consumers from collusion between firms that provide accommodation for rent.

[ 6 ]

Question 2

Question 2(d)

(a)

Define the term innovation.

[ 1 ]

Question 2(f)

(b)

Apart from price, describe one advantage for passengers of this competition.

[ 2 ]
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