A-LevelEconomicsThe price system and the microeconomy9708/32 · May/June 2020 · Q41 Mark
Four bus companies control more than two-thirds of the market in a country. Critics claim that these companies fix prices on some routes to maximise revenue whilst lowering prices on other routes to stop smaller competitors entering the market.
- (a)Which anti-competitive practices are these companies accused of? A collusion and limit pricing B collusion and price leadership C limit pricing and price discrimination D price leadership and x-inefficiency[1]
Mark scheme
Marking points from the official mark scheme (May/June 2020). The mark or mark type is shown in brackets.
- [1] A
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