A Level Economics (AQA) Questions and Answers with Verified
Solutions | Latest 2026 Update
Q: Non-Collusive Oligopoly
Answer:
Where firms in an oligopoly do not resort to agreements to fix
prices or output. Competition tends to be non-price. Prices tend to be stable.
Q: Kinked Demand Curve
Answer:
the demand curve for a noncollusive oligopolist, which is based on
the assumption that rivals will match a price decrease and will ignore a price increase
Q: Cartels
Answer:
an association of manufacturers or suppliers with the purpose of maintaining prices
at a high level and restricting competition.
, A Level Economics (AQA) Questions and Answers with Verified
Solutions | Latest 2026 Update
Q: Price War
Answer:
successive price cutting by competitors to increase or maintain their unit sales or
market share
Q: Price Leadership
Answer:
a form of implicit collusion in which one firm in an oligopoly announces a
price change and the other firms in the industry match the change
Q: interdependence
Answer:
the dependence of two or more people, businesses or things on each
other.
, A Level Economics (AQA) Questions and Answers with Verified
Solutions | Latest 2026 Update
Q: legal monopoly
Answer:
A firm with 25% or more of the market share
Q: Hit and Run Competition
Answer:
When firms can enter a market at low cost attracted by high
profits and then leave the market at low cost when profits fall
Q: Contestable Market
Answer:
a market in which firms can enter and leave so easily that firms in the
market face competition from potential entrants
Q: Static Efficiency
Answer:
the most efficient combination of existing resources at a given point in time
, A Level Economics (AQA) Questions and Answers with Verified
Solutions | Latest 2026 Update
Q: Dynamic Efficiency
Answer:
Dynamic efficiency is concerned with the productive efficiency of a firm
over a period of time.
Q: A firm which is dynamically efficient will be reducing its cost curves by
implementing new
Answer:
production processes. Dynamic efficiency will enable a reduction in both SRAC and
LRAC.
Q: Consumer Surplus
Answer:
the difference between the highest price a consumer is willing to pay for
a good or service and the actual price the consumer pays
Solutions | Latest 2026 Update
Q: Non-Collusive Oligopoly
Answer:
Where firms in an oligopoly do not resort to agreements to fix
prices or output. Competition tends to be non-price. Prices tend to be stable.
Q: Kinked Demand Curve
Answer:
the demand curve for a noncollusive oligopolist, which is based on
the assumption that rivals will match a price decrease and will ignore a price increase
Q: Cartels
Answer:
an association of manufacturers or suppliers with the purpose of maintaining prices
at a high level and restricting competition.
, A Level Economics (AQA) Questions and Answers with Verified
Solutions | Latest 2026 Update
Q: Price War
Answer:
successive price cutting by competitors to increase or maintain their unit sales or
market share
Q: Price Leadership
Answer:
a form of implicit collusion in which one firm in an oligopoly announces a
price change and the other firms in the industry match the change
Q: interdependence
Answer:
the dependence of two or more people, businesses or things on each
other.
, A Level Economics (AQA) Questions and Answers with Verified
Solutions | Latest 2026 Update
Q: legal monopoly
Answer:
A firm with 25% or more of the market share
Q: Hit and Run Competition
Answer:
When firms can enter a market at low cost attracted by high
profits and then leave the market at low cost when profits fall
Q: Contestable Market
Answer:
a market in which firms can enter and leave so easily that firms in the
market face competition from potential entrants
Q: Static Efficiency
Answer:
the most efficient combination of existing resources at a given point in time
, A Level Economics (AQA) Questions and Answers with Verified
Solutions | Latest 2026 Update
Q: Dynamic Efficiency
Answer:
Dynamic efficiency is concerned with the productive efficiency of a firm
over a period of time.
Q: A firm which is dynamically efficient will be reducing its cost curves by
implementing new
Answer:
production processes. Dynamic efficiency will enable a reduction in both SRAC and
LRAC.
Q: Consumer Surplus
Answer:
the difference between the highest price a consumer is willing to pay for
a good or service and the actual price the consumer pays
