In the UK the government ?
Correct answer: D. Has the right to investigate monopolies and will assess each one on its own merits
- A. Bans monopolies
- B. Fines all monopolies
- C. Prevents firms acquiring more than 25% of the market
- D. Has the right to investigate monopolies and will assess each one on its own merits
Explanation
UK competition policy does not automatically ban or fine every monopoly, nor does it impose a universal 25% market-share limit. Authorities investigate possible abuses and assess each case on its circumstances.
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Individual consumers, firms and markets are examined through demand and supply, elasticity, consumer choice, production, costs, revenue and the determination of prices and output. The topic also covers market structures such as perfect competition, monopoly and oligopoly, plus market failure, externalities and the distinction between microeconomic decisions and economy-wide outcomes.
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