A-LevelEconomicsThe price system and the microeconomy9708/32 · Oct/Nov 2017 · Q91 Mark

Many public utilities can be described as 'natural' monopolies. Which statement best describes the situation leading to a 'natural' monopoly? A There are high fixed costs and falling average costs over all outputs demanded. B There are legal restrictions on new entrants. C A single firm controls the supply of raw materials. D The firm has a patent on an essential process.

Mark scheme

Marking points from the official mark scheme (Oct/Nov 2017). The mark or mark type is shown in brackets.

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Topic: The price system and the microeconomy, A-Level Economics (syllabus 9708). Structured question, 1 mark.
Source: A-Level Economics, Oct/Nov 2017 Paper 3 Variant 2, question 9.

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