Sunday, September 23, 2007

Unit 2: Market dominance in the milk market

This BBC clip explains the allegations that there has been price fixing in the milk market

http://news.bbc.co.uk/player/nol/newsid_7000000/newsid_7004100/7004112.stm?bw=bb&mp=rm&asb=1&news=1

a) Who are alleged to have colluded in this price fixing?
b) In what way is this an example of market failure?
c) How does the government intervene to protect the consumer?
d) What penalties do the firms face if the allegations are proved?

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