Multiple Choice
At which of the problems is each of the policies targeted?
-Cross- subsidisation
A) The government makes it illegal for manufacturers to set the price at which their products must be sold by shops. _
B) The government nationalises the national electricity grid.
C) The government makes collusive agreements between oligopolists illegal.
D) The government sets up a body which can investigate any firm with a share of the market above a certain level.
E) Firms are prohibited from using unfair competitive practices whereby they use profits in one market to charge prices below cost in another, and thereby drive competitors out of business. _
F) A regulatory body has the power to limit a firm's price increases where this would result in 'excessive' supernormal profits.
G) The government passes legislation that enables an investigation of any mergers that will lead to the merged firm having more than a certain percentage share of the market.
Correct Answer:

Verified
Correct Answer:
Verified
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