6. Policy, Institutions and Applications
Competition Policy — Quiz
Test your understanding of competition policy with 5 practice questions.
Practice Questions
Question 1
Which of the following best describes a structural remedy in competition policy?
Question 2
In a market investigation, if a competition authority identifies a situation where firms are making abnormally high profits over a sustained period without new entry, what type of market failure is this most indicative of?
Question 3
Consider a market with three firms. Firm A has a market share of $40\% $, Firm B has $30\% $, and Firm C has $30\% $. What is the Herfindahl-Hirschman Index (HHI) for this market, and what does it suggest about market concentration?
Question 4
Which of the following is the most significant challenge faced by competition authorities when implementing behavioural remedies compared to structural remedies?
Question 5
When conducting a market investigation, competition authorities often consider the concept of 'barriers to entry'. Which of the following best exemplifies a significant barrier to entry that could lead to reduced competition?