3.6 Government intervention

Question 1

a) Government intervention to control mergers

Question 2

b) Government intervention to control monopolies:
o price regulation
o profit regulation
o quality standards
o performance targets

Question 3

c) Government intervention to promote competition and
contestability:
o enhancing competition between firms through
promotion of small business
o deregulation
o competitive tendering for government contracts
o privatisation

Question 4

d) Government intervention to protect suppliers and
employees:
o restrictions on monopsony power of firms
o nationalisation

Question 5

a) The impact of government intervention on:
o prices
o profit
o efficiency
o quality
o choice

Question 6

b) Limits to government intervention:
o regulatory capture
o asymmetric information