What this practice covers
These questions are drawn from past CIE 9708 papers and filtered to different market structures. 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 different market structures, taken from our own topic notes. Read them before you practise and you will recognise the traps in the questions.
- Using MC = MR to find price. It finds output; price is read from AR.
- Treating monopoly profit as guaranteed. Barriers allow persistence, but demand and cost determine whether profit exists.
- Calling the whole MC curve a competitive supply curve. The short-run supply segment is MC above minimum AVC.
- Confusing shutdown with exit. Shutdown is a short-run zero-output decision; exit is long-run departure.
- Saying monopolistic competition is productively efficient in the long run because it earns normal profit. Normal profit does not imply minimum ATC.
- Equating concentration with collusion. High concentration can facilitate coordination but does not prove it.
- Treating a natural monopoly as any legally protected monopoly. Natural monopoly is a cost condition.
- Assuming many firms means contestability. Contestability concerns entry, exit and sunk cost.
Revise it first
If any of the above is unfamiliar, work through the notes before practising: Different Market Structures revision notes.