Economics | 9708 P13 Oct/Nov 2021 | Cambridge AS Level Past Year Paper Discussion | qiphyedu

*For the first question, less competition might result in inefficiency, but it does not indicate that the possible quantity the economy can produce is decreased because PPC is used to indicate the maximum possible combination of two goods that can be produced in an economy. Therefore, the best answer is A because it is the most direct reason for the decrease in quantity.