Question 21N.1.HL.TZ0.2b
| Date | November 2021 | Marks available | [Maximum mark: 15] | Reference code | 21N.1.HL.TZ0.2b |
| Level | HL | Paper | 1 | Time zone | TZ0 |
| Command term | Evaluate | Question number | b | Adapted from | N/A |
Evaluate the view that the use of legislation and regulation by government is the most effective way to control monopoly power.
[15]
Marks should be allocated according to the paper 1 markbands for May 2013 forward, part B.
Answers may include:
- definition of monopoly power
- diagram of monopoly
- an explanation of how legislation and regulation can be used to limit the pricing power of monopoly firms
- examples of a monopoly being subjected to legislation and regulation by a government
- synthesis or evaluation (evaluate).
Evaluation may include: consideration of the advantages and disadvantages of legislation and regulation; comparison of the effectiveness of regulation of prices, regulation of patents and limitations to mergers/takeovers to alternative measures such as trade liberalization and nationalization.
Examiners should be aware that candidates may take a different approach which, if appropriate, should be rewarded.
Most candidates explained monopoly in general terms and discussed forms of government intervention in general (such as taxation, subsidies and price ceiling) but their answers could be improved by focusing on the specific demands of the question.
