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A-LevelEconomicsThe price system and the microeconomy9708/31 · Oct/Nov 2019 · Q71 Mark

What is a characteristic of a highly contestable industry? A a reduction in abnormal profits B a substantial volume of advertising by existing firms C relatively few firms in the industry D significant sunk costs incurred by new entrants to the industry

Mark scheme

Marking points from the official mark scheme (Oct/Nov 2019). The mark or mark type is shown in brackets.

  1. [1] Correct option: A

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About this question

Topic
The price system and the microeconomy, A-Level Economics (syllabus 9708). Structured question, 1 mark.
Source
A-Level Economics, Oct/Nov 2019 Paper 3 Variant 1, question 7.

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