Contestable Markets Teaching Exercises Edexcel A Level

This teaching pack on Contestable Markets is designed to help A-Level Economics students grasp the key concepts of market contestability with clarity and depth. The resource includes 15 full-length exercises and detailed solutions, covering all essential topics as outlined in the A-Level Edexcel specification.

Key Areas Covered
Barriers to Entry and Exit
Sunk Costs and Their Impact: Understanding the concept of sunk costs and how they influence firms’ decisions to enter or exit a market.
Incumbent Firms and Price Strategies: Examine how incumbent firms may react to the threat of new entrants by using limit pricing or adjusting prices to deter competition.
Hit and Run Entry: Learn about the vulnerability of firms to short-term entrants looking to exploit supernormal profits.
Legal and Illegal Barriers: Study the role of patents, state-owned franchises, and other legal and illegal barriers to entry, including predatory pricing and the effects on market contestability.

Features of the Revision Pack:
15 Full-Length Exercises: Each exercise focuses on a specific aspect of contestable markets, from theoretical concepts to practical applications.
Full Solutions: Every exercise is accompanied by clear, step-by-step solutions to reinforce learning and facilitate classroom discussions.
Variety of Question Types: Includes a mix of multiple-choice, short answer, case study, and diagram-based questions to cater to different learning styles.
Real-World Examples: Integrates contemporary examples, such as competition in the tech, telecommunications, and transport sectors, to show how contestability operates in practice.
Ideal For:
Classroom Practice: Perfect for individual or group work, offering students the opportunity to deepen their understanding of market structure and competition.
Homework or Revision: A fantastic resource for reinforcing key concepts and preparing for exams.
Lesson Planning: An essential tool for teachers to plan engaging and interactive lessons on contestable markets.