In recent years, British Telecom, the supermarket industry and 50 private schools have been investigated by the competition authorities for limiting competition. Evaluate different ways in which governments could make markets more competitive.
by
jazpeek (student)
In recent years, British Telecom, the supermarket industry and 50 private schools have been investigated by the competition authorities for limiting competition. Evaluate different ways in which governments could make markets more competitive.
The term competitive markets is used to describe an economic environment where those selling and those buying exchange goods and services at a price controlled by that market.
If the government wanted to make the markets of British Telecom (hence forth known as BT), the supermarket industry and the private school industry more price competitive the government could use policies which could be through removing or significantly reducing barriers to entry. An example of when this was used is when BT was privatised by the government, OFTEL forced BT to allow other companies to use its network. This made prices more competitive as it meant that they had to fight for customers with other companies.
