Application

Question 1

Quality standards and performance targets

Answer 1

This is under the topic gov intervention to control monopolies

The NHS has a performance target to view their patients within 4 hours. However this could cause them to rush and give their patients poor quality service.

BSI are the company that ensures the quality of toys are met. once toys are made, they are checked by the BSI and then the toy recieves the quality checked sticker form the BSI and only then they can sell the toys.

The FSA is the same as BSI but the FSA is for food.

Question 2

Regulatory bodies (gov intervention)

Answer 2

OFGEM regulate gas and electricity firms. They are an independent body from the government. They protect consumers by promoting innovation and enabling competition. They implement price caps based on a kWh basis

Question 3

Controlling mergers

Answer 3

When Orange and T-mobile merged, the CMA allowed, this merger because they realised that a bigger firm can effectively use their economies of scale and can expand the 3G network to benefit the market, and cause customers to have better networks at lower prices

Question 4

Privatisation

Answer 4

When royal mail were privatised, investors looked to cut costs, and therefore they halved letter deliveries from 6 days a week to 3 days a week, they layed off workers, all which negatively benfitted consumers.

Question 5

National minimum wage

Answer 5

This increased from around £3.90 back in the 1990’s when it first started, and now in 2025, it is £12.

Question 6

Labour market, shortage

Answer 6

British nurses moving to Australia due to higher salary.

Question 7

Labour markets : private sector and public sector jobs

Answer 7

Average earnings of workers in the private sector increasing, while average earnings of public sector jobs falling.

Question 8

Overt collusion

Answer 8

When British airways and virgin overtly. Colluded to fix prices of tickets high, they were investigated and virgin confessed , due to investigators using the tactic whistle blowing. This led to virgin receiving immunity from this illegal activity, whereas British airways reviewed high fines.

Question 9

Oligopoly (Qatar airways)

Answer 9

It opened many new connections, for example to places like San Francisco, and Qatar airways offers competitive prices for business class.

Question 10

Monopoly - Amazon

Answer 10

Amazon exploit their monopoly power by charging high prices, service poor quality goods. FTC says they leave shoppers paying more for worse.