This unit develops the content of Unit 1 and examines how the pricing and nature of competition between firms is affected by the number and size of market participants. At the end of this unit, students should be able to analyse the pricing and output decisions of firms in different contexts. They should also be capable of making an appraisal of government intervention aimed at promoting competitive markets. Where appropriate, students should be able to relate the theoretical framework to real-world examples.
Students will be required to make simple calculations involving percentage changes and index numbers. They will also be required to interpret diagrams and construct simple graphs.
Examination length: 1 hour 30 minutes
Supported multiple-choice questions where students write a short justification of why they chose that answer and/or why the other answers are incorrect. Worth 32 marks.
One data response question out of a choice of two questions. Worth 40 marks.
Total: 72 marks