Skip to main content

3.11 Why does the government intervene in markets to maintain competition?



What students need to learn:

Content
Students should be able to:
Additional Guidance Notes
Government intervention to maintain competition in markets
Explain and evaluate measures aimed at enhancing competition between firms and their impact on prices, output and market structure.

Compare and evaluate the strengths and weaknesses of methods of regulation for example price capping, monitoring of prices and performance targets.
Students should be able to explain why governments may intervene to encourage competition, or prevent monopolies and mergers.

A detailed knowledge of the legislation that relates to competition policy is not required.

Students will need to be aware of various types of private sector involvement in public sector organisations, including contracting out, competitive tendering and public private partnerships (PPP/PFI).

Popular posts from this blog

Factors of Production and their Rewards

Type Definition Reward Land Labour Capital Enterprise All natural resources The physical and mental works of people All man made tools and machines All managers and organizers Rent Salary/Wage Interest Profit/Loss

Factors Affecting Geographical Mobility of Labour

Geographical Mobility of Labour refers to the movement of workers from one place to another place.  It depends upon; ·cost of housing ·cost of relocation ·availability of social amenities ·family ties etc

Common Barriers to Occupational Mobility of Labour

Barriers to Occupational Mobility of Labour ·Lack of natural abilities ·Lack of qualification ·Cost and length of training ·Discrimination ·Ignorance of available job opportunities
Ways to increase Occupational Mobility of Labour ·By providing training and retraining ·By organizing job centers