There exists a view that the UK is too small an economy to benefit from competition in many industries, with firms failing to reach minimum efficient scale. What does this imply for competition policy?
Answer to relevant QuestionsShould regulators of utilities that have been privatised into several separate companies allow?(a) Horizontal mergers (within the industry); (b) Vertical mergers; (c) Mergers with firms in other industries?Explain how equilibrium would be restored in the circular flow of income if there were a fall in investment.Explain whether it would be desirable to have zero unemployment.What policy measures could the government adopt to prevent the exchange rate movements in question 11?Why will the short-run consumption function be different from the long-run consumption function?
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