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IGCSE Economics1.2.6.c Government regulation of competition toTopic Practice

1.2.6.c Government regulation of competition to

Government regulation of competition to:

• promote competition

• limit monopoly power

• protect consumer interests

• control mergers and takeovers.

Question 1(h)

[Maximum number: 3]

When a firm increased its prices, many consumers stopped buying its products.

In April 2023, the Competition and Markets Authority (CMA), the competition regulator in the UK, prevented the purchase of Activision by Microsoft. Microsoft already controlled about 60-70% of the market for online video gaming.

Explain one reason why the CMA may have made this decision.

Question 2(f)

[Maximum number: 3]

In 2023, the Italian Government introduced legislation to increase the number of taxis available to the public.

Explain one reason why the Italian Government may have introduced legislation that makes it easier for new taxi firms to enter the market.

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