Economics 9708 · AS & A Level · 7.6

7.6 — practice question

(a)[4]

Explain what collusion means and under what circumstances it is most likely to arise in an industry.

(b)[4]

Analyse, using Table 1, whether price fixing was beneficial to Procter and Gamble.

(c)[6]

Suggest why building the advantage of large scale by integrating across its different businesses' could help a firm.

(d)[6]

Is the evidence in the article enough to conclude that Procter and Gamble is acting against the public interest?

Worked solution & mark scheme

This 20-mark question has a full step-by-step worked solution and mark scheme. One marking point: Definition: an arrangement between firms (perhaps to set prices, set output by quotas, or limit advertising).

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