Government Intervention to Promote Competition (Edexcel A-Level Economics A): Quizzes
📚Quizzes
Practise the questions
10 questions from this quiz
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Practise the questions
10 questions from this quiz
What is competition policy primarily designed to achieve?
What is competition policy primarily designed to achieve?
Promote competition & protect consumers
When was the Competition and Markets Authority (CMA) established?
When was the Competition and Markets Authority (CMA) established?
April 2014
What criteria trigger a CMA merger investigation?
What criteria trigger a CMA merger investigation?
Over 25% market share & over £70m assets
What characterises a perfectly contestable market?
What characterises a perfectly contestable market?
No barriers to entry/exit & low sunk costs
Which is NOT a main function of the CMA?
Which is NOT a main function of the CMA?
Setting maximum prices for all goods
What happens when a profit-maximising monopoly uses its market power?
What happens when a profit-maximising monopoly uses its market power?
Reduces consumer surplus & creates deadweight
What was the outcome of the Sainsbury-Asda merger proposal in April 2019?
What was the outcome of the Sainsbury-Asda merger proposal in April 2019?
CMA blocked it due to SLC concerns
What is the purpose of the hypothetical monopoly test?
What is the purpose of the hypothetical monopoly test?
Define smallest market for profit increase
When is collusion risk particularly concerning in concentrated markets?
When is collusion risk particularly concerning in concentrated markets?
Few similar-sized firms in static markets
What does demand-side substitutability examine?
What does demand-side substitutability examine?
If consumers switch when prices increase