Monopoly

Tesla held an 82% market share of the electric vehicle market in the United States during the first half of 2020.

(Source: adapted from https://electrek.co/2020/08/21/ tesla-holds-us-ev-market-losing-federal-tax-credit/)

Evaluate whether a monopoly is likely to operate efficiently. Refer to at least one monopoly of your choice.

In many industries, such as banking, health insurance, internet search engines, pharmaceuticals, social media and telecommunications, there have been increases in market concentration.

Evaluate the possible consequences for business decision making of increased market concentration. Refer to industries of your choice in your answer.

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Refer to Figure 1. Explain the likely effect of the change in subsidy levels between 2017 and 2018 on rail fares.

Include a supply and demand diagram in your answer.

With reference to Figure 2, examine two possible factors which may have influenced demand for rail travel since 2008.

Assess whether complete nationalisation of the rail industry might protect employees.

With reference to Extract A, paragraph 3, discuss whether the rail network can be considered to be a natural monopoly.

Discuss the likely benefits of price discrimination to rail passengers. Use a diagram to support your answer.

Refer to Figure 1. Explain the likely effect of the change in subsidy levels between 2017 and 2018 on rail fares.

Include a supply and demand diagram in your answer.

With reference to Figure 2, examine two possible factors which may have influenced demand for rail travel since 2008.

Assess whether complete nationalisation of the rail industry might protect employees.

With reference to Extract A, paragraph 3, discuss whether the rail network can be considered to be a natural monopoly.

Discuss the likely benefits of price discrimination to rail passengers. Use a diagram to support your answer.

With reference to Extract A, explain the difference between a positive statement and a normative statement.

With reference to Extract B, examine the likely benefits to consumers of the integration between BT and EE.

With reference to Extract C, assess possible reasons why many ‘landline-only’ customers do not switch to a cheaper telephone provider.

Discuss one likely reason for the rise in BT’s profit (Figure 2, Extracts B and C). Use a cost and revenue diagram to support your answer.

Discuss methods of government intervention to protect consumers within the utilities markets, such as energy and telecommunications.

In July 2016 Apple’s share of the UK market for smartphones was 38%.

Evaluate whether such a high market share for one company is in the consumer interest. Use appropriate diagrammatic analysis in your answer.

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