Competition Policy (Edexcel A-Level Economics A): Flashcards
📚Flashcards
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Practise the cards
10 cards from this deck
Competition policy aim
Competition policy aim
Promote competition & protect consumers to enhance market efficiency
Market power effect on resource allocation
Market power effect on resource allocation
Raise prices, reduce output, harm consumers, reduce welfare
CMA full name & when formed
CMA full name & when formed
Competition and Markets Authority (April 2014)
CMA merger investigation triggers (2 criteria)
CMA merger investigation triggers (2 criteria)
25% UK market share AND >£70m worldwide assets
SLC in competition policy
SLC in competition policy
Substantial Lessening of Competition
Perfectly contestable market features
Perfectly contestable market features
No/low barriers to entry/exit, zero/low sunk costs
Relevant market definition
Relevant market definition
Market including all substitutes but no non-substitutes
Cartel
Cartel
Agreement between firms to fix prices/limit output/divide markets
Deadweight loss from monopoly
Deadweight loss from monopoly
Loss to society from reduced output & higher prices
X-inefficiency
X-inefficiency
Productive inefficiency when firms don't minimise costs