Unit 2.11 · Market Failure: Market Power
Government Response to Market Power
AO3HL
Syllabus Requirement
Legislation, regulation, government ownership, and fines are tools used to curb abuse of market dominance.
Assessment Objectives
AO3Synthesis and Evaluation
Summary
This topic discusses how governments respond to the market power of firms, particularly monopolies and oligopolies. It covers various strategies such as legislation, regulation, nationalization, and fines, which aim to prevent the abuse of market power and promote fair competition.