Possible Essay Use Exam style question text pg 6 “assess the case that the oligopoly market for smartphone consumers may be in the best interest of the consumers” 20 marks

Mark scheme

Things to include Pros Must be in context – draw from case study Cons Large companies can invest in R&D – better phones Large companies have econs of scale – price lower? Monopsony power – could lower prices Must be in context – draw from case study Cons Monopoly power – price makers – higher price Less choice Evaluation – judgement must be made

Lesson Objectives All students will understand the importance of market power and market failure Most students will be able to assess the implications of market failure Few students will understand the importance of market failure on the economy

Market power Question - What does this mean??

Market Power Things to consider Monopoly Power Monopsony Power Cartels Price maker Abnormal profit Monopsony Power Power over supplier Cartels Collusion Restrictive practice Barriers to entry; fixing prices; market rigging; bundling products Tacit agreement

Power in labour Market Monopsony and Monopoly power can be found in labour markets How???

Power in labour Market An employer that employs a significant % of a local population could have power over them, e.g. large factory or mine in a small town Public Sector employees have power over , especially if have a strong trade union Case study – Junior Doctors current dispute pg33

The implications of market failure Imperfect Markets do not achieve Productive or Allocative efficiency Summarise Apple case study to help explain this – pg34

Look at exam style Qc pg 34 Work in pairs to create a plan for this answer in your note book