5 marks
Case study · Hand car wash (HCW) firms in the UK
Using the information provided, explain the market structure that best describes the hand car wash (HCW) industry in the UK.
Specification point 3.4.2 · Theme 3
Perfect competition
Market structures · Business behaviour and the labour market
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4 marks
ContextIn Sicily, many households can grow lemons of the same quality as each other. Chiara decides to sell lemons at her local market, expecting to make a normal profit. She notices that all of the many lemon sellers are charging exactly the same price.
Draw diagrams showing the equilibrium positions for both the lemon market and a typical firm in the long run.
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A-level Paper 1, November 2021, Q5(b)Multiple choice
1 mark
ContextIn Sicily, many households can grow lemons of the same quality as each other. Chiara decides to sell lemons at her local market, expecting to make a normal profit. She notices that all of the many lemon sellers are charging exactly the same price.
Which one of the following will exist in the short run if Chiara makes a loss?
AAllocative efficiency and productive efficiency
BAllocative efficiency and productive inefficiency
CAllocative inefficiency and productive efficiency
DAllocative inefficiency and productive inefficiency
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