Syllabus: AQA - GCSE Economics
Module: 3.1.5 Competitive and Concentrated Markets
Lesson: 3.1.5.3 Non-competitive Markets

Introduction

This section of the AQA GCSE Economics specification—3.1.5.3 Non-competitive Markets—is part of the broader unit on Competitive and Concentrated Markets. Students explore how market structures affect pricing, output, and consumer choice, a foundation for understanding real-world economic dynamics.

Aligned directly with AQA’s GCSE Economics syllabus, this topic bridges textbook theory with commercial realities. It introduces learners to the characteristics and consequences of monopoly and oligopoly, enabling them to assess the impact of market power on consumers, producers, and society at large.

Understanding non-competitive markets is essential for developing commercial awareness and workplace readiness. It builds students’ ability to critically evaluate economic decisions, which directly links to Gatsby Benchmarks 4 and 5 through curriculum-career integration and real-world employer contexts.

Key Concepts

Students should be able to:

• Define non-competitive markets, including monopolies and oligopolies.

• Identify key characteristics of monopolies (e.g. single seller, price-setting power) and oligopolies (e.g. few dominant firms, interdependence).

• Understand the causes and consequences of market dominance, including barriers to entry and reduced competition.

• Analyse the advantages and disadvantages of monopolies and oligopolies from the perspective of different stakeholders (consumers, producers, government).

• Evaluate the impact on price, output, innovation, and efficiency in non-competitive markets.

• Understand the role of government regulation in limiting or managing monopoly power.

These core concepts support broader curriculum goals around evaluating real-world economic activity, stakeholder outcomes, and market structures.

Real-World Relevance

Monopolies and oligopolies are not just abstract ideas—they define major sectors of the global economy. Key real-life examples help students contextualise this topic:

• Google (Alphabet) – A modern monopoly in online search. Its market dominance raises questions about consumer choice, data privacy, and innovation incentives.

• UK Energy Market (e.g. British Gas, E.ON, EDF) – A classic oligopoly where a small number of firms dominate household energy supply. Ofgem regulates these firms to prevent price gouging.

• Supermarkets (e.g. Tesco, Sainsbury’s, Asda, Aldi) – An oligopoly with fierce price competition, but questions persist about supply chain power and barriers for smaller competitors.

Discussing these examples in class supports cross-curricular links to citizenship, geography, and business studies, while reinforcing commercial awareness as a life skill.

How It’s Assessed

Assessment for this topic typically includes:

• Multiple-choice questions testing knowledge of definitions and characteristics.

• Short-answer questions that assess understanding of market structures.

• Data-response questions based on real or hypothetical market situations (e.g. analysing the impact of a merger or price change).

• Extended written responses (8–12 markers) where students evaluate the pros and cons of monopolies or propose regulatory solutions.

Key command words to focus on:

• Analyse – break down the causes or consequences.

• Evaluate – provide a balanced judgement.

• Discuss – present multiple viewpoints.

• Explain – describe clearly with reasons or causes.

Mark schemes reward application, so encouraging students to reference real examples is essential for higher-level responses.

Enterprise Skills Integration

Non-competitive markets offer a powerful lens to develop core enterprise skills:

• Decision-Making & Problem-Solving: Students assess complex trade-offs between price, innovation, and efficiency in monopoly vs competitive settings.

• Commercial Awareness: Learners understand how businesses use market power to influence prices, limit competition, and maximise profits.

• Stakeholder Analysis: Encourages students to view economic activity from multiple perspectives—consumers, regulators, firms, and society.

• Data Interpretation: Exam-style graphs on market share and pricing provide opportunities to develop analytical confidence.

Tools from the Skills Hub Futures platform, such as the Stakeholder Impact Mapping and Market Power Simulation, directly reinforce these skills in the classroom.

Careers Links

Understanding market structures prepares students for diverse career pathways, particularly those involving analytical, regulatory, or business functions. This topic supports:

• Gatsby Benchmark 4 – Curriculum linked to careers by exploring job roles in competition law, business strategy, and regulatory bodies.

• Gatsby Benchmark 5 – Use employer case studies (e.g. Ofcom, CMA, or Google) to show how economists work in real business contexts.

• Gatsby Benchmark 6 – Simulations of regulatory decision-making or pricing strategies mirror workplace scenarios, helping students build practical experience.

Relevant roles include:

• Market Analyst

• Competition Economist

• Strategic Consultant

• Regulatory Affairs Officer

• Policy Advisor

These pathways can be introduced through guest speakers, virtual employer challenges, or workplace case studies validated through the Enterprise Skills employer network.

Teaching Notes

Suggested Activities:

• Monopoly Debate: Split the class into stakeholders and debate whether a given monopoly (e.g. Amazon) should be broken up.

• Oligopoly Price Wars: Model supermarket price cuts using role-play to demonstrate interdependence.

• Case Study Analysis: Use CMA rulings or newspaper articles on big tech firms to apply concepts in context.

Common Misconceptions:

• All monopolies are bad – encourage students to think critically (e.g. innovation, economies of scale).

• Competition always leads to better outcomes – introduce nuance through real-world cases.

Extension Opportunities:

• Introduce game theory basics when discussing oligopolies.

• Explore international examples for cross-cultural comparisons (e.g. telecoms in the EU vs US).

Differentiation Tips:

• Use scaffolded sentence starters for extended responses.

• Provide visual aids (e.g. diagrams of monopoly vs perfect competition).

• Adapt real-world examples to reflect current events and news stories.

Resources to Support Delivery:

• Skills Hub Business simulations

• Stakeholder role cards

• Ofcom/CMA regulatory case summaries

• Interactive graphs for market share analysis

These resources help teachers embed workplace relevance and evidence-based active learning, increasing both engagement and outcomes.