Economics Essay

470 Words2 Pages
HL 1 May 12 HL P1 (a) Explain the economic factors which may encourage the formation of a monopoly. 10 Marks (b) Evaluate the view that natural monopoly is a more desirable market structure than perfect competition. 15 Marks 2 May 12 HL P1 (a) Explain why, in markets dominated by a few firms, prices may remain relatively stable. 10 Marks (b) “An industry with a larger number of firms will experience lower prices and greater efficiency than an industry with a smaller number of firms.” Evaluate this view. 15 Marks 3 Nov 09 HL P1 (a) Explain why a firm may practice price discrimination and the necessary conditions for it to take place. 10 Marks (b) “Although a firm may pursue a range of goals, economists usually assume that profit maximization is the main goal.” Discuss this statement. 15 Marks 4 May 09 HL P1 (a) In the theory of the firm, a distinction is made between short-run cost curves and long-run cost curves. Using appropriate cost curve diagrams, explain this distinction. 10 Marks (b) Evaluate the view that greater economic efficiency will always be achieved in perfect competition as compared to monopoly. 15 Marks 5 Nov 11 HL P1 (a) Explain the different objectives that a firm in an oligopolistic market structure might try to achieve. 10 Marks (b) Evaluate the view that an oligopolistic market is an inefficient market structure. 15 Marks SL 1 May 10 HL P1 (a) Explain the importance of price elasticity of demand and cross-elasticity of demand for business decision-making. 10 Marks (b) Studies have shown that the demand for tobacco tends to be highly price inelastic. Evaluate the view that governments can best reduce smoking by substantially increasing taxes on cigarettes. 15 Marks 2 May 10 SL P1 (a) With the aid of at least one diagram, explain the
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