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.

11 mark
A monopoly is a market structure in which:
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21 mark
The marginal cost (MC) curve intersects the average total cost (ATC) curve:
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31 mark
Market power refers to the ability of a firm to:
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41 mark
Market power refers to the ability of a firm to:
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51 mark
A monopoly is a market structure in which:
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61 mark
A profit-maximising firm will produce where:
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74 marks
Explain two types of barriers to entry that can create market power.
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81 mark
A firm with significant market power that restricts output to raise prices will likely cause:
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91 mark
High barriers to entry in a market are significant because they:
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101 mark
Which of the following is most likely to give a firm market power?
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111 mark
High barriers to entry in a market are significant because they:
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121 mark
Competition policy (antitrust regulation) aims to:
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134 marks
Define market power and explain two sources of market power for a firm.
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144 marks
Define market power and explain two sources of market power for a firm.
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154 marks
Explain why a monopolist has more market power than a firm in a competitive market.
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164 marks
Explain the difference between a price taker and a price maker.
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174 marks
Explain two government policies that can address the abuse of market power.
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184 marks
Explain why a monopolist has more market power than a firm in a competitive market.
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194 marks
Explain two negative consequences of market power for consumers.
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204 marks
Explain the difference between a price taker and a price maker.
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