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.
2Define2 marks
2026
Define fixed costs and give one example.
Markscheme and model answer locked
Unlock Question3Sketch2 marks
Sketch a diagram showing the profit-maximising output of a firm in long-run equilibrium under perfect competition.
Markscheme and model answer locked
Unlock Question4Define2 marks
2026
A car manufacturer doubles the size of its plant and finds that its cost per car falls.
Define the term economies of scale.
Markscheme and model answer locked
Unlock Question5Identify1 mark
A firm faces the cost and revenue curves described below. Identify the allocatively efficient level of output.
Markscheme and model answer locked
Unlock Question6Identify1 mark
2026
Identify the jointly profit-maximising pair of strategies.
Markscheme and model answer locked
Unlock Question7Identify1 mark
A firm faces the cost and revenue curves described below. Identify the profit-maximising level of output.
Markscheme and model answer locked
Unlock Question8Calculate2 marks
The table shows a firm's short-run costs. Complete the three missing entries.
Markscheme and model answer locked
Unlock Question91 mark
Market power refers to the ability of a firm to:
Markscheme and model answer locked
Unlock Question11Calculate2 marks
A firm's total cost of producing 40 units is $3,200. If it raises output to 50 units its total cost becomes $3,750. Calculate the average cost per unit at the higher level of output.
Markscheme and model answer locked
Unlock Question12Sketch2 marks
Sketch a diagram showing the long-run equilibrium of a firm in monopolistic competition.
Markscheme and model answer locked
Unlock Question13Sketch2 marks
Sketch the long-run average cost curve of a natural monopoly, labelling the axes and the region of output over which the firm enjoys economies of scale.
Markscheme and model answer locked
Unlock Question15Identify1 mark
2026
Identify the profit-maximising level of output shown on the diagram.
Markscheme and model answer locked
Unlock Question16Identify1 mark
The payoff matrix shows the daily profit, in thousands of dollars, for two firms choosing between a high and a low price. Identify the strategy pair that jointly maximises profit.
Markscheme and model answer locked
Unlock Question17Calculate2 marks
At its profit-maximising output of 400 units a firm's average revenue is $25 and its average total cost is $19. Calculate the profit earned at this level of output.
Markscheme and model answer locked
Unlock Question18Calculate2 marks
A firm sells 30 units at $18 each. To sell 35 units it must lower its price to $16. Calculate the marginal revenue over this range of output.
Markscheme and model answer locked
Unlock Question19Sketch2 marks
Sketch a diagram of a monopoly, marking the profit-maximising output and the allocatively efficient output.
Markscheme and model answer locked
Unlock Question201 mark
A profit-maximising firm will produce where:
Markscheme and model answer locked
Unlock QuestionReady to practice Topic 2.11?
Get instant AI feedback on your answers, view detailed markschemes, and track your progress across all IB Economics topics.
Start Practising Now