Economics 0455 · IGCSE · Market structure

Market structure — practice question

Industries and markets in Vietnam are undergoing change. Division of labour is being used more widely across a range of industries. As competition rises in many markets, some firms are now making losses. In 2018, manufacturing was Vietnam’s strongest sector, and manufacturing output rose by 13%.
(a)[2]

Define the term division of labour.

(b)[4]

Explain two reasons why a firm making a loss may still keep producing.

(c)[6]

Analyse the advantages that consumers may receive from a competitive market.

(d)[8]

Discuss whether an increase in a country’s manufacturing output will lead to higher economic development.

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