The costs and benefits of such policies
Competition policy can protect consumers and boost efficiency. But it also carries real costs — enforcement is expensive, and regulators can make mistakes that harm the firms they oversee.
Real World
When the EU fined Google €2.4 billion in 2017 for abusing its search dominance, consumers benefited from greater choice — but the lengthy legal process cost years of regulatory resources and created uncertainty for the tech sector.
Exam Focus
For 'evaluate' questions, always weigh regulatory failure risk (e.g. over-intervention stifling innovation) against the benefits of protecting competition.
Price Elasticity of Demand
PED = % change in quantity demanded ÷ % change in price
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