2.5.2 - Legislation Flashcards
What does legislation involve?
Creating and enacting laws in order to protect individuals, firms and society as a whole
What is the purpose of environmental protection laws?
To help ensure that firms do not have a negative impact on the environment
How can firms follow environmental protection laws?
- control pollution
* clean up its sites
When does a monopoly exist?
Where there is only one firm in the market
How much market share does a firm need to be considered as having monopoly powers?
25%
What is market power?
Ability of a firm to set price above those that would be charged if there were competition
Why are monopolies regulated?
In order or protect consumers from exploitation in an aim to achieve free and fair competition
What are consumer protection laws?
Protect the consumer from firms with regards to quality of goods or services sold
Why are consumer protection laws needed?
Big businesses are more powerful than individual consumers therefore the consumers mustn’t be exploited
What do health and safety regulations require?
- consultation with workers
- workers provided with free safety equipment
- safety representatives
