Lesson 3.6.1

3.6.1 Market dominance Quiz: OCR Business, Unit 3

20 questions

Written by Revision Ninja · Last reviewed 11 October 2026

In partnership with Revision Ninja

Lesson 3.6.1, Market dominance: 20 multiple choice questions for the OCR Business (H431), Unit 3: External influences, written with Revision Ninja.

Host it live on the board and students join with a game code on their own devices, or revise alone with Free Play. The answers are revealed in the game.

Host this setFree Play

The 20 questions

  1. What market share threshold legally defines a monopoly in the UK?

    • 10%
    • 75%
    • 25%
    • 50%

  2. Which UK authority is responsible for regulating competition and investigating market dominance?

    • ASA
    • Ofcom
    • FCA
    • CMA

  3. What type of growth occurs when a firm expands using its own internal resources?

    • Organic growth
    • Conglomerate merger
    • External growth
    • Horizontal integration

  4. What is an unrecoverable cost incurred by a business when leaving a market called?

    • Fixed cost
    • Sunk cost
    • Opportunity cost
    • Variable cost

  5. What occurs when two separate companies agree to combine and form one business?

    • Demerger
    • Organic growth
    • Merger
    • Acquisition

  6. What term describes a market structure dominated by a single selling firm?

    • Oligopoly
    • Monopsony
    • Duopoly
    • Monopoly

  7. What strategy involves setting artificially low prices to drive rivals out of business?

    • Penetration pricing
    • Cost-plus pricing
    • Predatory pricing
    • Skimming pricing

  8. Which type of integration occurs between two firms at the same stage of production?

    • Conglomerate
    • Forward vertical
    • Backward vertical
    • Horizontal integration

  9. A pharmaceutical firm holds a twenty-year patent on a drug. What barrier is created?

    • Structural barrier
    • Financial barrier
    • Legal barrier
    • Exit barrier

  10. If a company buys over fifty percent of another firm without management consent, this is a:

    • Strategic alliance
    • Hostile takeover
    • Joint venture
    • Friendly merger

  11. A major supermarket sells petrol below cost to destroy local competitors. Who investigates this?

    • CMA
    • Trading Standards
    • HMRC
    • Bank of England

  12. Heavy advertising spend by dominant manufacturers builds market dominance primarily by creating strong:

    • Demographic shifts
    • Sunk costs
    • Vertical integration
    • Brand loyalty

  13. A car manufacturer acquires a supplier of engine components. What type of integration is this?

    • Horizontal
    • Forward vertical
    • Conglomerate
    • Backward vertical

  14. A dominant company with forty percent market share sets industry prices. What is this power?

    • Elastic demand
    • Perfect competition
    • Price leadership
    • Zero entry barriers

  15. High investment in specialised factory machinery with low resale value forms what type of barrier?

    • Regulatory barrier
    • Exit barrier
    • Dynamic barrier
    • Trade barrier

  16. Two competing airlines secretly meet to set minimum passenger fares. What is this illegal activity?

    • Collusion
    • Diversification
    • Synergy
    • Takeover

  17. Which outcome is a potential benefit to consumers when a firm gains market dominance?

    • Restricted choice
    • Higher prices
    • Reduced innovation
    • Economies of scale

  18. Why might the Competition and Markets Authority block a merger between two dominant retailers?

    • Reduced consumer choice
    • Lower food prices
    • Greater output
    • Increased tax yield

  19. Lower unit costs achieved through large-scale production create which competitive barrier for new entrants?

    • Legal monopoly barrier
    • Exit cost barrier
    • Economies of scale
    • Geographic barrier

  20. What risk do suppliers face when dealing with a single dominant buyer in an industry?

    • Complete independence
    • Higher profit margins
    • Increased bargaining power
    • Monopsony power

All OCR Business quizzes