: Pearson Edexcel past-paper questions pack

Market structures: efficiency, perfect and monopolistic competition

Past-paper questions pack

Name
Class
Date set
Date due
Score	/ 50

Questions are numbered; the mark schemes (the answer key) follow on separate pages so the question pages can be handed out alone. www.economicsaleveltutor.com

Pearson Edexcel AS and A-level Economics past-paper questions since 2016 · 9 parts · mark schemes follow the questions · www.economicsaleveltutor.com · Questions and mark schemes © Pearson Edexcel

1. June 2025 · Paper 1 · Q3(a) · 1 marks ·

(a) Which one of the following applies to the dental practice’s equilibrium at point E? The dental practice is: (1) A in long-run equilibrium B making normal profit because average revenue is greater than average cost C making supernormal profit because marginal cost equals marginal revenue D productively efficient

2. June 2025 · Paper 1 · Q6(a) · 5 marks · AO1=1,AO2=2,AO3=2

(a) With reference to Extract A, explain one likely impact of the growth of digital markets on allocative efficiency. (5)

3. June 2023 · Paper 1 · Q3(b) · 4 marks · AO1=2,AO2=2

(b) Small local bakeries have many of the characteristics of monopolistic competition. Draw the short run profit maximising equilibrium of a loss‑making luxury brownie baker. (4)

4. June 2022 · Paper 1 · Q7 · 25 marks · AO1=4,AO2=4,AO3=8,AO4=9

7 Tesla held an 82% market share of the electric vehicle market in the United States during the first half of 2020. (Source: adapted from https://electrek.co/2020/08/21/ tesla-holds-us-ev-market-losing-federal-tax-credit/) Evaluate whether a monopoly is likely to operate efficiently. Refer to at least one monopoly of your choice.

5. November 2021 · Paper 1 · Q5(a) · 4 marks · AO1=2,AO2=2

(a) Draw diagrams showing the equilibrium positions for both the lemon market and a typical firm in the long run. (4) Firm Market

6. November 2021 · Paper 1 · Q5(b) · 1 marks · AO3=1

(b) Which one of the following will exist in the short run if Chiara makes a loss? (1) A Allocative efficiency and productive efficiency B Allocative efficiency and productive inefficiency C Allocative inefficiency and productive efficiency D Allocative inefficiency and productive inefficiency

7. November 2021 · Paper 3 · Q1(a) · 5 marks · AO1=2,AO2=2,AO3=1

(a) Using the information provided, explain the market structure that best describes the hand car wash (HCW) industry in the UK. (5)

8. June 2019 · Paper 1 · Q3(a) · 1 marks · AO3=1

(a) The UK hair and beauty industry is an example of monopolistic competition because: (1) A firms spend nothing on advertising and research B the industry is dominated by a few large firms C the products are homogenous D there are low barriers to entry and exit

9. June 2019 · Paper 1 · Q3(b) · 4 marks · AO1=2,AO2=2

(b) Draw a cost and revenue diagram to show the long-run equilibrium of a firm in monopolistic competition. (4)

Mark schemes

1. June 2025 · Paper 1 · Q3(a)

Mark scheme June 2025 Paper 1 Q3(a)

2. June 2025 · Paper 1 · Q6(a)

Mark scheme June 2025 Paper 1 Q6(a)

3. June 2023 · Paper 1 · Q3(b)

Mark scheme June 2023 Paper 1 Q3(b)

4. June 2022 · Paper 1 · Q7

Mark scheme June 2022 Paper 1 Q7

5. November 2021 · Paper 1 · Q5(a)

Mark scheme November 2021 Paper 1 Q5(a)

6. November 2021 · Paper 1 · Q5(b)

Mark scheme November 2021 Paper 1 Q5(b)

7. November 2021 · Paper 3 · Q1(a)

Mark scheme November 2021 Paper 3 Q1(a)

8. June 2019 · Paper 1 · Q3(a)

Mark scheme June 2019 Paper 1 Q3(a)

9. June 2019 · Paper 1 · Q3(b)

Mark scheme June 2019 Paper 1 Q3(b)