Compared with markets for manufactured goods and services, agricultural markets are nearer to perfect competition. The aims of business organisations can differ from one market to another, and also within the same market. In 2017, the Nigerian government used supply-side policy measures to affect the aims and performance of firms in a variety of markets and to reduce firms’ average production costs.
(a)[2]
Identify two features of perfect competition.
(b)[4]
Explain two goals that a business organisation may have.
(c)[6]
Analyse the main reasons why firms differ in size.
(d)[8]
Discuss whether or not a government’s use of supply-side policy measures will reduce firms’ average costs of production.
Worked solution & mark scheme
This 20-mark question has a full step-by-step worked solution and mark scheme. One marking point: “Large numbers of buyers and sellers” …