Competition Policy (AQA A-Level Economics): Quizzes
📚Quizzes
Practise the questions
10 questions from this quiz
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Practise the questions
10 questions from this quiz
In perfect competition, who holds power in the market according to the principle of consumer sovereignty?
In perfect competition, who holds power in the market according to the principle of consumer sovereignty?
Consumers through purchasing decisions
Which three main harms does monopoly power create?
Which three main harms does monopoly power create?
Net welfare loss, surplus transfer, excess profit
What is the main purpose of competition policy?
What is the main purpose of competition policy?
Make imperfect markets more competitive
When might monopoly be preferable to many small competitive firms?
When might monopoly be preferable to many small competitive firms?
When economies of scale are possible
Which government agency is responsible for implementing UK competition policy?
Which government agency is responsible for implementing UK competition policy?
Competition and Markets Authority (CMA)
What approach does UK competition policy use to assess monopolies?
What approach does UK competition policy use to assess monopolies?
Cost-benefit case-by-case approach
For a market to be perfectly contestable, what must disappear?
For a market to be perfectly contestable, what must disappear?
Barriers to entry and sunk costs
When is a merger eligible for CMA investigation?
When is a merger eligible for CMA investigation?
If it leads to substantial lessening of competition
What is a cartel agreement?
What is a cartel agreement?
Firms agree to fix prices collectively
In 2018, why did the EU fine Google €4.3 billion?
In 2018, why did the EU fine Google €4.3 billion?
Abusing dominance with Android OS