Government intervention Flashcards
1
Q
How can the CMA control monopolies
A
Price regulations
Profit regulations
Windfall tax
Breaking up firms
2
Q
How can CMA promote competition and contest ability
A
Promotion of small businesses (subsidies)
Deregulations
3
Q
Pros and cons of privatisation
A
Greater competition
Reduces government interference
Can be negative externalities
4
Q
What are limits of government intervention?
A
Regulatory capture
Asymmetric information
