What this practice covers
These questions are drawn from past AQA A-Level papers and filtered to perfect competition and monopoly. You answer, you find out immediately whether you were right, and you get the reasoning for the correct option and for each distractor. Wrong answers go to a mistakes locker so you can come back to exactly those.
Practice is free. You need an account only so your progress and your mistakes are still there next time.
Start practising Paper 3 MCQs →
What examiners see students get wrong here
These are the errors that cost marks on perfect competition and monopoly, taken from our own topic notes. Read them before you practise and you will recognise the traps in the questions.
- Saying monopoly is "always bad" without the economies-of-scale and dynamic-efficiency counter-arguments.
- Confusing allocative (P = MC) with productive (minimum ATC) efficiency.
- Treating X-inefficiency as productive inefficiency, X-inefficiency means costs are above the cost curve entirely.
- Forgetting that perfect competition earns only normal profit in the long run, and why that undermines dynamic efficiency.
- Omitting one of the three conditions for price discrimination, especially preventing resale.
- Saying price discrimination always harms consumers, output usually rises.
Revise it first
If any of the above is unfamiliar, work through the notes before practising: Perfect Competition and Monopoly revision notes.