Economics 3366A/B Study Guide - Quiz Guide: Chiquita Brands International, Competition Law, Perfect Competition
22 Sep 2020
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Our competition law comes from europe, it is haemorrhaged into uk law. Competition law is good for resource allocation and ensures technological flexibility and consumer demand. According to smith the market is an allocated device and the best way to ensure efficiency of it is to leave it alone. The market is not perfect, it fails in its promise and doesn"t deliver what it should. When this happens, it is legitimate to step in and do something about it. Competition law is the marriage of law and economics - not a happy one. To address this, you have to understand markets. We have to look at the relevant market - market in goods or services in which there is, or ought to be competition. Ssnip test - small but significant non- transitory increase in price test, or the 5% test.
