Competition Policies Flashcards
1
Q
Privatisation benefits
A
Allocative efficiency
Efficiency incentive therefore dynamic efficiency
2
Q
Privatisation drawbacks
A
Limited competition therefore productive and allocative inefficiency
Loss making firms
Loss of natural monopolies and economies of scale
3
Q
Deregulation benefits
A
Increase consumer choice
Productive and dynamic efficiency
4
Q
Deregulation drawbacks
A
Loss of natural monopoly
Increase average costs
Wasteful use of resources
Formation of oligopolies and local monopolies
