A-LevelEconomicsMarket Structures / OligopolyOct/Nov 2017Paper 3 Q101 Mark
Increased advertising by a firm in an imperfectly competitive industry leads to an increase in demand for the industry's product but a fall in the firm's profits. What could help to explain this? A Production is subject to diseconomies of scale. B Rival firms respond by increasing their advertising outlays. C The demand for the industry's product is price-inelastic. D The increase in demand for the firm's output is entirely at the expense of other firms.
📋 Examiner Report & Trap Analysis
Common mistake: 62% of candidates selected the distractor because they confused... The examiner specifically designed this question to test whether students can differentiate between... To secure full marks, candidates must demonstrate...
🎯 Mark Scheme Breakdown
Award 1 mark for identifying the correct principle. Award 1 mark for showing clear working. Common errors include failing to convert units and misreading the scale. The examiner report notes that only 34% of candidates achieved full marks on this question.
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