DP Economics
Question 21M.3.HL.TZ0.3a
| Date | May 2021 | Marks available | [Maximum mark: 2] | Reference code | 21M.3.HL.TZ0.3a |
| Level | HL | Paper | 3 | Time zone | TZ0 |
| Command term | Outline | Question number | a | Adapted from | N/A |
a.
[Maximum mark: 2]
21M.3.HL.TZ0.3a
Note that a widget is an imaginary product.
In the country of Laurania, the widget industry operates as an oligopoly. The Minister for Finance is worried that the firms in the industry might abuse their power by acting together as a monopoly, and has said that the industry’s concentration ratio is cause for concern.
(a)
Outline how a concentration ratio might be used to identify an oligopoly.
[2]
Markscheme
Examiners report
The majority of candidates demonstrated an understanding that a concentration measures market power, but many did not specify that a higher ratio signified greater market power.
