For some products there has been an increasing dominance of large firms in the last five years. For example, in the telecommunications industry most countries now have four or five operators, some have only two. In other markets many small firms exist.

Mark scheme

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

1. [12] Reasons for growth of firms, reasons for existence of smaller firms.
2. L4 for a sound explanation with good illustrations and a clear understanding of the principles involved 9–12
3. L3 for a competent comment with limited development. One sided approach max 7. 7–8
4. L2 for a limited but acceptable attempt to consider differences or reference to different market structures only. 5–6
5. L1 For an answer that has some basic correct facts but includes irrelevancies and errors of theory 1–4
6. [13] Discussion of effects of larger firms in terms of reduced output, higher prices, higher profits, but possibly more research, innovation, product branding, economies.
7. L4 for a sound explanation with good illustrations and a clear understanding of the principles involved 9–13
8. L3 for a competent comment with limited development. One sided discussion max 7. 7–8
9. L2 for a limited but acceptable attempt to consider differences 5–6
10. L1 For an answer that has some basic correct facts but includes irrelevancies and errors of theory 1–4