AS & A Level / Economics / Firms, costs and competition Question practice
Firms, costs and competition About this practice Original, unofficial practice. Evaluative marking points are indicative: credit equivalent justified arguments, one point per distinct criterion, without double counting.
Accept equivalent valid methods and supported interpretations that address the task. Award each mark once; matching the model wording is not required.
Economics Firms, costs and competition
View All Incomplete Complete Review mistakes One at a time
Revision Ladder All stages Easy Medium Hard
1 Explain the difference between productive and allocative efficiency for a firm. Easy 2 marks No calculator + 2 Fictional case: Kero produces 50 units at price 18. Fixed cost is 200 and variable cost is 500 currency units. Calculate total cost, average cost and profit. Easy 3 marks Calculator + 3 Fictional case: a large bakery installs specialised ovens and negotiates bulk flour discounts, but its managers become slow to coordinate. Analyse two economies of scale and one diseconomy in this case. Medium 4 marks No calculator + 4 Fictional firm faces P = 60 - Q and total cost TC = 100 + 20Q. With MR = 60 - 2Q and MC = 20, calculate profit-maximising output, price and profit; explain why using P = MC would be wrong for this firm's objective. Medium 4 marks Calculator + 5 Fictional case: two bus operators propose merging, promising shared depots but leaving only one operator on local routes. Evaluate whether the merger benefits passengers. Hard 4 marks No calculator + 6 Fictional case: one digital platform dominates bookings, yet new entrants can lease software cheaply. Users value its large existing network and cannot transfer reviews. Evaluate whether cheap software makes this market contestable. Hard 4 marks No calculator + Self-assessed Not marked yet
Set total 21
This is a self-study tool, not a certified answer key or a predicted AS & A Level grade.
Loading progress Reset progress
Original questions, not official past papers. Marking guidance is indicative, not an official answer key. Check your exam-board specification.
