Identify the key features that affects firms’ decision to set price level
Discuss the relative significance of input cost, consumer incomes and market concentration in influencing firms’ pricing decisions. 
What you need to know to attempt this essay question?
Beginning with the definitions, you will explain the meaning of the above economic terms, such as input cost, consumer incomes and market concentration. There is also an underlying need to highlight the aim of the firms, which is profit maximisation and the economic environment, which is imperfect market condition. Due to the complexity of the question, you should also follow a systematic manner of discussion to smoothen the flow of evaluating the three variables.
- Cost of Production
- Market Structures
How to apply the knowledge to your exam preparation?
The video that you watch will help you comprehend the question requirements as well as the answer outline. After the video, formulate your own outline and attempt to tackle the question under timed condition. It is important that you complete your essay in 45 minutes, given that Paper 2 (Essay) lasts for 2 hours 15 minutes.
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