1 Using a diagram, explain how a monopoly determines its price and output level. Discuss the view that 'less competition among agribusinesses also means higher prices and fewer choices for consumers'. [8 marks] Descriptors A well-drawn and fully-labelled diagram showing a profit-maximising monopoly and distinct comparison of price-output combinations under perfect competition and a monopoly. Clear indication of the rule of profit-maximisation. Drawbacks of a monopoly in terms of as opposed to perfect competition are well-explained with reference to productive inefficiency and allocation inefficiency