Economics 2281 · O Level · Market structure

Market structure — practice question

Vietnam’s industries and markets are undergoing change. Division of labour is being used more widely across a number of industries. A growing number of markets are becoming more competitive, which is causing some firms to record 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 loss-making firm may carry on producing.

(c)[6]

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

(d)[8]

Discuss whether or not a rise in a country’s manufacturing output will improve its economic development.

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