Seminar One

Question 1

Q1: What are the four main elements of competition law?

Answer 1

A1: Anti-competitive agreements, abuse of dominant positions, merger control, state-aid rules

Question 2

Q2: What is allocative efficiency?

Answer 2

A2: When the price of a product is close to the marginal cost of production, matching demand and supply.

Question 3

Q3: Why is a monopoly considered harmful to competition?

Answer 3

A3: Lack of competition allows the monopolist to raise prices and reduce production efficiency.

Question 4

Q4: What is an oligopoly?

Answer 4

A4: A market dominated by a few large firms, often susceptible to anti-competitive practices like price-fixing.

Question 5

Q5: What does the Chicago School of economic theory advocate regarding competition law?

Answer 5

A5: Minimal regulation, with markets being self-correcting based on rational-choice theory.

Question 6

Q6: What is the difference between total welfare and consumer welfare?

Answer 6

A6: Total welfare includes both consumer and producer surplus, while consumer welfare focuses only on consumer surplus.

Question 7

Q7: What is Article 101 of the TFEU?

Answer 7

A7: It prohibits anti-competitive agreements between firms in the EU.

Question 8

Q8: What body primarily enforces EU competition law?

Answer 8

A8: The European Commission, along with national competition authorities.

Question 9

Q9: What is the role of the UK’s Competition and Markets Authority (CMA)?

Answer 9

A9: To enforce UK competition law, including the Competition Act 1998 and the Enterprise Act 2002.