(a) Define market in economics.
(b) State any three features of a monopoly.
(c) Outline any three sources of monopoly power.
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A good number of candidates attempted this question and scored above average marks. The (a) and (c) parts of the question were well attempted. However, most of the candidates could not provide the right answers for the (b) part of the question which reduced their scores for this question.
These candidates were expected to state the following answers for the (b) part to score good marks.
(b) Features of a monopoly are as follows:
there is only one seller of a product;
entry is restricted. Barriers to entry are so severe that new firms find it
difficult to enter the market;
it has the power to control price or output but not both;
there is an imperfect knowledge or information about market conditions;
there is no perfect substitute for the products sold by the monopolist.
