Government Intervention to Promote Competition (Edexcel A-Level Economics A): Flashcards

Investigates mergers that could increase market concentration

One firm supplies entire market more efficiently than multiple firms

Force firms to seek productivity gains to eliminate inefficiency

Revenue using Incentives to deliver Innovation and Outputs

Regulator champions firm instead of controlling it effectively

Removing restrictions on producers to encourage competition

Large buyers exploit suppliers with substantial buying power

Transfer of nationalised industries into private ownership

Companies know more about their costs than regulators do

Pricing at marginal cost causes losses as AC exceeds price