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Linking the Broadcast Media to the Specification

Sections of topic
Need to know terms/phrases
References to Case Study

4.3.1b: Do Markets Always Work?

What Market Failure Means

Less than optimum allocation of resources ­ when `resources' (i.e. land, labour,
and capital) are `allocated' to various industries and maximum benefit is…

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reduce the size of the industry.
Programmes containing sex and violence may be considered demerit goods.
*See Evidence I ­ adverse health effects of watching too much TV.

Equity and Equality
*Explained in 4.3.4b

What Are Externalities And How They Affect An Economy

Externalities are external benefits or external costs.…

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This leads to question, what would we do without the government income of
taxation, in this respect are externalities acceptable?

Costbenefit Analysis ­ weighing up potential financial gains against potential
financial costs. (I.e. comparing private costs with private benefits).
E.g. the Governments decision to switch off analogue signal over 20092012…

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4.3.2b: Should Markets Be Regulated?

Why Regulation Is Needed

Protection of consumers

Monopolies and oligopolies can charge higher prices and produce a lower
output than the same industry would if it had a competitive structure.
These noncompetitive structures are an example of Market Failure.
It results in a lessthanoptimum size…

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In 2007 BskyB purchased a share holding in ITV of 17.9%, the CC said this
would damage competition so instructed them to reduce its shareholding to less
than 7.5%.
In 2008 BBC, ITV and Channel 4 proposed a joint venture for VOD known as
Project Kangaroo. The CC said the…


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