Economics 9708 · AS & A Level · 7.6

7.6 — practice question

(a)[6]
  • Distinguish how limit pricing differs from predatory pricing. [4]
  • Explain whether the article provides any evidence of either of these two pricing policies. [2]
(b)[6]

Assess three possible beneficial effects on the macroeconomy of the huge rise in the size of the five largest technology companies.

(c)[8]

The article claims that the expansion of large firms is harmful to consumers, harmful to competition and leads to inequality. Consider whether the article and economic theory can justify this claim.

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