Contestable markets

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Contestable markets
where there is free entry and free exit of other firms
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competition policy
methods that the UK govt. and the EU authorities use in order to make markets more efficient
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restrictive trade practices
methods used by firms to reduce competition in a market
3 of 18
competition commission
a govt organisation responsible for implementing policy in relation to monopolies
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dominant market position
where a firm or group of firms working together have a market share of 40%
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Office of Fair Trading
a govt organisation responsible for implementing aspects of competition policy
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department of Trade and Industry
the govt department responsible for British industry
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Public interest
a term used broadly to cover the public's right not to be exploited by firm's abusing monopoly power
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nationalisation
state control of firms
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restrictive trade practices
methods used by firms to reduce competition in a market
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natural monopoly
a firm that can theoretically gain continuous EOS and where it is thus uneconomic for more than one firm to supply the market
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enterprise culture
a way of life that emphasises the importance of individuals who create their own businesses and create wealth
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public-private partnerships (PPP)
partnerships between the private and public sectors to provide public services
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private finance initiative (PFI)
a form of public-private partnership in which private sector firms undertake the bulk of the work
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regulation
setting rules and controls that restrict market freedom
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regulatory capture
where agencies set up to regulate industries or firms can be captured or influenced by the firms they are intended to oversee
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goodwill
the value of a firm in excess of its asset value including reputation, brand name, trade contacts and general expertise
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hit and run entry
where new firms enter the industry, cream off some of the supernormal profits of the incumbents and then exit
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Other cards in this set

Card 2

Front

methods that the UK govt. and the EU authorities use in order to make markets more efficient

Back

competition policy

Card 3

Front

methods used by firms to reduce competition in a market

Back

Preview of the back of card 3

Card 4

Front

a govt organisation responsible for implementing policy in relation to monopolies

Back

Preview of the back of card 4

Card 5

Front

where a firm or group of firms working together have a market share of 40%

Back

Preview of the back of card 5
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