Unit 2: Microeconomics
Topic 2.11: Market Failure — Market Power Questions
Practice 20 exam-style questions for IB Economics Topic 2.11. Review the question stems below, then unlock the full Question Bank to access markschemes, model answers, and AI grading.
21 mark
The marginal cost (MC) curve intersects the average total cost (ATC) curve:
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Market power refers to the ability of a firm to:
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Market power refers to the ability of a firm to:
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A profit-maximising firm will produce where:
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Explain two types of barriers to entry that can create market power.
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A firm with significant market power that restricts output to raise prices will likely cause:
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High barriers to entry in a market are significant because they:
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Which of the following is most likely to give a firm market power?
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High barriers to entry in a market are significant because they:
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Competition policy (antitrust regulation) aims to:
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Define market power and explain two sources of market power for a firm.
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Define market power and explain two sources of market power for a firm.
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Explain why a monopolist has more market power than a firm in a competitive market.
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Explain the difference between a price taker and a price maker.
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Explain two government policies that can address the abuse of market power.
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Explain why a monopolist has more market power than a firm in a competitive market.
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Explain two negative consequences of market power for consumers.
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Explain the difference between a price taker and a price maker.
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