Government Intervention in dealing with market failure

Marlet structures other perfect competition reflect market failure as

• they produce differentiated products

• collusion is possible.

• P > MC

• MR = MC

firm refusing to deal with certain customers could be a luxury fashion brand refusing to sell their products to individuals who are known for reselling them at a significantly higher price. These individuals are called

• scalpers

• inflaters

• influencers

• Auth enticers

Competition Commission of India framed the Competition Act to promote fair competition, prevent monopolistic practices, and ensure a level playing field for businesses in India in the year

• 1997

• 1992

• 2002

• 2005

a country that generally believes that government intervention in the market is not required to achieve consumer protection and allocative efficiency is

• UK

• US

• France

• Japan

Identify this Firm:

A major cable television and internet service provider acquired a majority stake in NBCUniversal, which owns various media assets including NBC television network, Universal Pictures, and several cable channels such as MSNBC and CNBC.

• AT&T

• China Mobile Limited

• Comcast

• NTT

Firms hire lawyers to determine if compliance to anti-competitive policies is costlier than breaking them. They do against the

• collusion

• imposition of fines

• regulation against natural monopoly

• average cost pricing policy

Governments are not harsh towards natural monopolies as breaking up a natural monopoly leads to

• lower average cost and waste of resources.

• higher average cost

• waste of resources

• higher average cost and waste of resources

Governments can regulate natural monopolies by

• nationalisation, Marginal cost pricing and average cost pricing.

• privatisation, marginal cost pricing and average cost pricing.

• Marginal cost pricing and average cost pricing

• nationalisation and privatisation

In the late 1990s and early 2000s, Chicken leg quarters, which consist of the leg and thigh portions of the bird, were being exported from the United States to Mexico at prices lower than the cost of production. Local producers in Mexico couldn't compete with the cheap imported chicken, leading to a decline in their market share and profitability. Many small-scale poultry farmers went out of business, causing job losses and economic hardship in rural communities dependent on poultry farming. This is an example of

• subsidy

• Economies of scale

• trade

• dumping

This is an example of

• subsidy

• prisoner's dilemma

• price fixing.

• dividing territories