1. In 2001 independent petrol stations complained that oil companies, including

BP Amoco, Esso and Royal Duch Shell, were selling them fuel at higher prices

than they were charging their own outlets. They argued that this made it

difficult for them to compete against the oil companies' outlets.

a.

What type of barrier were the independent petrol stations complaining

about? (10 Marks)

b.

Discuss 2 barriers to entry that are likely to exists in the oil industry (10

Marks)

2. Define and explain the characteristics of Perfect Competition. Use examples to

help illustrate your answer. (15 Marks)

3. "Governments should legislate to prevent monopolies becoming too powerful."

Explain why this may be beneficial; use examples to illustrate your answer. (10

Marks)

4. Compare and contrast Monopoly and Monopolistic Competition markets. (15

Marks)

5. What role does the firm take in setting the price of a product in a perfect

competition and monopoly market structure? Please give examples to illustrate

your points. (10 marks)

6. Describe the characteristics of an oligopoly market structure and give examples

to illustrate your points. (15 marks)

7. What level of competition exists in each of the market structures and how does

this level of competition impact on consumer choice in those structures? (15

marks)