econ

Competition policy

An approach that seeks to improve the competitive nature of markets to alleviate market failure and protect consumer welfare.

Market failure

A situation in which the allocation of goods and services is not efficient, leading to a loss of economic value.

Monopoly power

The ability of a firm to overcharge consumers and restrict output due to lack of competition.

Mergers

The combination of two companies into one, which can reduce competition if not regulated.

Cartels

A group of independent companies that work together to control prices and limit competition.

Allocative efficiency

A state where resources are distributed in such a way that maximizes consumer satisfaction.

Dynamic efficiency

The efficiency achieved by firms in the long run through innovation and improvement of products or processes.

Natural monopoly

A market situation where a single firm can supply the entire market at a lower cost than multiple firms.

Consumer protection laws

Regulations designed to ensure the rights of consumers and to protect them from unfair business practices.

Anti-competitive practices

Actions taken by firms to reduce competition in the market, such as price fixing or dumping.

Consumer surplus

The difference between what consumers are willing to pay and what they actually pay.

Regulation

The creation of rules and sanctions within an industry to modify the economic behavior of firms.

Supernormal profits

Profits that exceed the normal expected return on investment.

Allocative inefficiency

A situation where resources are not allocated in a way that maximizes total benefit to society.

Market power

The ability of a firm to influence the price of its product or service.

British Gas

A gas supplier in the UK, previously a state-owned monopoly that has faced competition since privatization.

BBC

British Broadcasting Corporation, a public service broadcaster that faces regulation in its operations.