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EnglandEconomicsQuick questions

Theme 3: Business behaviour and the labour market

Quick questions on Market structures: perfect competition, oligopoly and monopoly - Edexcel A-Level Economics A

2short Q&A pairs drawn directly from our worked dot-point answer. For full context and worked exam questions, read the parent dot-point page.

What is q1?
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Explain why a firm in perfect competition earns only normal profit in the long run. [4 marks]
What is q2?
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Explain one reason a monopoly may be allocatively inefficient. [3 marks]

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