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
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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A profit-maximising firm will produce where:
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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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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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Using a diagram, explain why a monopoly creates deadweight loss compared to perfect competition.
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Which of the following is most likely to give a firm 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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Competition policy (antitrust regulation) aims to:
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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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Explain why a perfectly competitive firm earns only normal profit in the long run.
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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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Explain two government policies that can address the abuse of market power.
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