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3 marksIntervention

CAPE Economics Unit 1 · 2015 · Paper 2 · Question 4(b)(i)

State THREE reasons why competition or regulatory authorities may prevent a merger of TWO major companies in an industry.

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Other parts of this question

  1. 4(a)(i)Define the term 'market failure'.[2 marks]
  2. 4(a)(ii)Define the term 'Pareto efficiency'.[2 marks]
  3. 4(a)(iii)Define the term 'productive efficiency'.[2 marks]
  4. 4(b)(ii)a)Explain how public goods contribute to market failure, stating an example.[4 marks]
  5. 4(b)(ii)b)Explain how merit goods contribute to market failure, stating an example.[4 marks]
  6. 4(c)Discuss TWO measures used by governments to correct market failure.[8 marks]

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