Economics 9708 · AS & A Level · 7.6

7.6 — practice question

(a)[4]

The supermarket says that it gains from integration. The banks say that they have economies of scale. Distinguish between integration and economies of scale.

(b)[4]

Analyse how any greater integration may influence a supermarket’s costs.

(c)[4]

Comment on Morrisons’ performance from 2009–2011 compared with its larger competitors.

(d)[8]

Does the information provide enough evidence to conclude that banking and food retailing are oligopolistic markets?

Worked solution & mark scheme

This 20-mark question has a full step-by-step worked solution and mark scheme. One marking point: Comment on what is meant by the two terms: integration, vertical or horizontal, is a merger or acquisition.

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