If you analyze the last 10 years of A/L Economics papers, one thing is clear: Market Structures (Velanda Pola) is a mandatory topic. Whether it’s a tricky MCQ or a full 10-mark essay, you cannot escape Perfect Competition or Monopolies.
However, many students struggle here because the graphs look similar. To help you master this section, we have curated the Top 10 “Must-Do” Questions from past papers. If you can answer these, you are ready for the exam.
1. Perfect Competition (Poorna Tharangaya)
- Question Type 1:Short-Run vs. Long-Run Equilibrium.
- The Challenge: Can you draw the transition from making abnormal profits in the short run to normal profits in the long run?
- Practice: See 2019 Past Paper (Part II).
- Question Type 2:The Shut-Down Point.
- The Challenge: Explain why a firm continues to produce even when making a loss. You must understand the relationship between Price (P) and Average Variable Cost (AVC).
- Practice: See 2021 Model Paper (MCQ https://www.google.com/search?q=%2312).
2. Monopoly (Ekadhikariya)
- Question Type 3:Price Discrimination.
- The Challenge: How and why does a monopolist charge different prices to different consumers? (Key concept: Consumer Surplus).
- Practice: Review the 2018 Past Paper Essay Question.
- Question Type 4:Natural Monopolies.
- The Challenge: Explain why some industries (like electricity/water) remain monopolies for efficiency.
3. Monopolistic Competition (Adhikari Tharangaya)
- Question Type 5:Product Differentiation.
- The Challenge: Explain the role of advertising and non-price competition.
- Practice: See 2020 Past Paper Structure Essay.
- Question Type 6:Excess Capacity.
- The Challenge: Prove graphically why these firms are not allocatively efficient compared to perfect competition.
4. Oligopoly (Swithadhikariya)
- Question Type 7:The Kinked Demand Curve.
- The Challenge: This is a classic. You must draw the “Kink” and explain price rigidity. Why don’t prices change even when costs change?
- Practice: 2017 Past Paper (Part II).
- Question Type 8:Cartels & Collusion.
- The Challenge: Discuss why cartels (like OPEC) are unstable in the long run.
Why Practice These Specific Questions?
These questions cover 90% of the theory in this chapter. Examiners often recycle these concepts, just changing the numbers or the context.
📥 Download the Full Question Pack
Don’t waste time searching through 10 years of books. We have compiled these specific questions into a single PDF workbook for you.