(a)[2]
Define the term ‘capital-intensive’.
(b)[4]
Explain two features of perfect competition.
(c)[6]
Analyse two internal diseconomies of scale that a large firm might encounter.
(d)[8]
Discuss whether consumers would gain from a rise in imports.
Economics 0455 · IGCSE · Market structure
Market structure — practice question
Tuk-tuks, which are three-wheeled motorised rickshaws, are used in several countries. India is the biggest producer of this vehicle. The largest tuk-tuk producer in India competes with domestic firms and with imported tuk-tuks. The industry is becoming more capital-intensive and more competitive, although it remains far from perfect competition.