Econ 3 Competition Policy Help!Watch
Starting out with key definitions, examples of intervention types and where it is needed I think would be a good start.
What I want now is to categorize key considerations to make on whether or not competition policy is necessary/worth it.
Consideration 1: are there issues in the current market e.g. exploitation of consumers, bad PQRS (price, quality, range, service)
Consideration 2:ly how contestable is the market? will it resolve itself
Consideration 3: the opportunity cost of intervention, is it likely that failure e.g. information failure is likely to result...
Consideration 4: would it actual be better if we did intervene, for example would competition mean higher costs for firms due to lower outputs
Conclusion: depends on how well it is functioning currently, depends on how contestable the market is, depends on how good information is in the market and how likely intervention is to help, depends on economies of scale in the industry
Also note that in the long run barriers may reduce and thus not be insurmountable, for example increased global trade and the advent of the internet have greatly reduced monopoly powers globally.
Any help/suggestions would be much appreciated. This is one of my weaker areas of Micro but if anyone needs help for anything at all in the course for AQA A2 Micro or Macro just drop me a message
your conclusion could be improved by basing it on short and long term effects of policies encouraging competition and ur current one doesn't really answer the question very much,
yours points on it depending on how contestable the market is etc...can be used as evaluative bits for your points in each consideration, it makes you essay points stronger.
examiners do not like reading kind of 'listy' conclusions.
this is just my view on the weaker bits of ur essay, overall it is quite solid, but try doing what I mention and it could help you enter strongly into the level 5 band