What this practice covers
These questions are drawn from past CIE 9708 papers and filtered to growth and survival of firms. 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 growth and survival of firms, taken from our own topic notes. Read them before you practise and you will recognise the traps in the questions.
- Calling every takeover horizontal integration without checking the stage of production.
- Confusing backward with forward vertical integration. Backward goes towards the supplier.
- Treating a merger and a takeover as identical. A merger is agreed, a takeover need not be.
- Assuming growth always lowers average cost, forgetting diseconomies and integration costs.
- Explaining why small firms survive purely in terms of finance.
- Placing cartels under market structures. Cambridge examines them here, in 7.7.
- Stating that cartels are unstable without explaining the individual incentive to exceed quota.
- Assuming a cartel must include every producer, when it needs only enough combined share to move the price.
Revise it first
If any of the above is unfamiliar, work through the notes before practising: Growth and Survival of Firms revision notes.