2025 context

example of state owned business

channel 4

what is an example of a company that operates in a market where OFGEM(office of general energy markets) regulates maximum prices

octopus

what sector has been a major recipiant of subsidies in recent years

renweable energy

which industry has a minimum price in scotland

alcohol

examples of 3 state owned businesses

network rail(rail infastructure), british business bank( bank to support small medium sized businesses), scotrail( train services nationalised in april 2022)

key drivers for state ownership

cost of living pressures, investment in infastructure over short term profits(thames water)

3 examples of privatised businesses

royal mail(privatised in 2013-16), lloyds bank( bailed out in 2008, privatised in 2017), northern rock( sold to virgin money in 2011)

what does efficiency depend on for private firms

contestability and competition

example of monopoly that still faces competition

uk broadband

examples of industrys with price caps

energy price cap (until oct 2024), rail fares( certain tickets), telecommunications(BT openreach)

what is BT openreach an example of

a quasi natural monopoly

what are regulators of natrual monopolys such as ofcom or ofgem described as acting like

a surrogate competitor

what is ofcom

office of communications( regulation)

what is a socail tarriff

when a company provides cheaper prices for families on low income/ people on universal credit

what are social tarriffs and example of for monopolys

3rd degree price discrimination where monpolys can increase welfare for those on lower incomes

evaluation for monopoly

judge a monopoly by outcomes rather than textbook theory

3 examples of recent mergers 2024

virgin money - nationwide building society, aviva - direct line group, baratt homes - redrow homes

what is an example of macroeconomics having micro foundations

barrat purchasing redrow which could increase quantity of new house building and therefore improve mobility of labour

3 examples of duopolys

pepsi and coke, visa and mastercard, inpost and amazon(parcel lockers)

how can oligopolys be contestable

oligopoly firms may be in price competition and competition of suppliers, each gaining economies of scale, and threat from challengers keeps prices low

3 examples of contestable markets

parcel couriers, low cost airlines, low cost gyms

what are the types of economies of scale?

purchasing economies, financial economies, technical economies, risk bearing economies

who is the biggest supplier of gas in the uk

octopus

what are 3 examples of indirect tax

VAT, sugar tax, landfill tax

what is good evaluation for government intervention for market failure

one policy is usually not enough and both demand and supply side policys are needed

• government market failure