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 profit-maximising firm will produce where:
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Market power refers to the ability of a firm to:
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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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Explain the difference between a price taker and a price maker.
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Explain two negative consequences of market power for consumers.
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In the long-run equilibrium of a monopolistically competitive firm:
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Explain two government policies that can address the abuse of market power.
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Competition policy (antitrust regulation) aims to:
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High barriers to entry in a market are significant because they:
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A firm with significant market power that restricts output to raise prices will likely cause:
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A firm with significant market power that restricts output to raise prices will likely cause:
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Explain why a monopolist has more market power than a firm in a competitive market.
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Which of the following is most likely to give a firm market power?
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Competition policy (antitrust regulation) aims to:
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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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Which condition is NOT required for a firm to practise price discrimination?
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