application Flashcards
(28 cards)
What is the 5 firm concentration ration in the UK supermarket industry? Which supermarkets? double checkldryndryndtryndtn
66%
Tesco, Sainsbury’s, Aldi, Asda, Lidl
What is Tesco’s market share
28.5%
How many households in the UK are active members of the Tesco Clubcard loyalty program
Over 22 million households
What was the effect of the 1996 supermarket price war on the price of baked beans
Sold for 5p in Asda and 3p on Tesco
How much of the worlds proven oil reserves is owned by OPEC
-80%
-responsible for 40% of global oil production
talk about output restriction, anti competitive
How many unemployed people are unwilling to move to find work
The Joseph rowntree foundation found that 20% of people who are unemployed are unwilling to move to find work
What are the two types of market failure in the labour market
Occupational immobility and geographical immobility
What is occupational immobility
When workers have a lack of transferrable skills when moving between jobs
What is geographical immobility
When it’s difficult to move from one place to another due to the high cost of moving, family, housing
Do aldi exploit their monopsony power
No, they are increasing the wage they offer to £13.66 and £14.35 if you’re in london - well above nmw, they do this to reduce staff turnover and the associated recruitment costs
What is the typical fine of a firm caught colluding
10% of annual revenue
What happens if firms are caught colluding
Fines typically 10% of annual revenue
CEOs will be held legally accountable - can face jail time and unlimited fines
What is the markup rate (the difference in pay for unionised and non unionised workers)
5% - clearly demonstrating the efficacy of a trade union
How has trade union density (the percentage of workers in an industry who are unionised) changed
Has fallen by 25% since the 1970s - limits trade unions bargaining for higher pay
Who enforces competition policy where
CMA in the UK
Eu competition commissioner
Federal trade commission in the US
Why was Sainsbury’s and asdas merger blocked by the CMA in 2019
Found sufficient evidence led them to believe the market share of the new company would exceed 30%, giving them an artificially dominant position in the market
How much where the two pharma companies, Pfizer and Flynn fined for fixing the price of a life saving epilepsy drug far above the marginal cost of supply
£70 million by the CMA
What did the CMA find in 2020 in regards to Tesco and landlord agreements
They had entered into many restrictive landlord agreements, making it difficult for other supermarkets to open up stores next to Tesco branches, allowing Tesco to build a localised monopoly
How much where the two pharma companies, Pfizer and Flynn fined for fixing the price of a life saving epilepsy drug far above the marginal cost of supply
£70 million by the CMA
What does ofgem do in terms of price controls
Ofgem sets an energy price cap/max price on the monthly bill that energy companies can charge consumers
What performance targets does ofwat set for water monopolies
Targets for leakage reductions and reducing the number of pollution incidents
What is Apples market share of the US mobile phone industry(monopoly)
60%
We’re D&D tax breaks used in the smartphone industry
Yes, for Lenovo
What percentage of water company profits have gone to dividends in the last 10 years
96%
