Antitrust is predominantly an American term referring to laws regulating the abuse of monopoly power. Monopolies have various disadvantages for society and consumers. In particular: Higher prices Less choice Less incentives to cut costs and develop new products Monopsony buying power and employment of labour Antitrust laws came into effect in the nineteenth century due …
Costs of production relate to the different expenses that a firm faces in producing a good or service. Types of costs Fixed costs – costs that don’t vary with output Sunk costs – costs that cannot be recovered on leaving industry, e.g. advertising Variable costs – costs relating to how much is produced (e.g. raw …
An assembly line is a process of production which enables a continuous efficient rolling process. Usually, it involves a good, such as a car, moving along a conveyor belt. As it moves slowly along, workers add different parts to the car. Economies of scale and assembly lines Assembly lines enable economies of scale from the …
A takeover of Gala casinos by Rank casino has been referred to the competition commission because it would create a firm with 44% market share.
What are the key issues affecting the UK economy over the next few years? Recession and Recovery The biggest problem facing the UK economy is the lack of economic recovery. After a fall in GDP of 6% in 2008/09, the economy briefly recovered, but the recent double dip recession of 2012 has left the UK …
The Olympics has definitely created a feel-good factor for the nation. This Olympic bounce should see a short-term improvement in consumer confidence and consumer spending. But, whether this will be sufficient to transform the UK’s long-term economic fortunes, is quite another matter. Whilst British athletes were setting world records and gaining record amounts of gold …
Readers Question: How does manipulating the LIBOR rate upwards improve the profits of the trading division of a bank? The London Interbank Offered Rate (LIBOR) is the average interest rate estimated by leading London banks for the cost involved in borrowing from other banks. The banks themselves set their own LIBOR rate. Some banks set …
A report by the Institute of Fiscal Studies suggests the NHS will need an extra £20 billion of funding by 2020. The NHS already accounts for 23% of government funding, and is one of the few departments to be protected from budget cuts. But, in the age of austerity, spending commitments imply flat real spending …