1.1 Read the following extract and answer question 1.1, 1.2.Evidence of dominationBoth the Competition Commission and Icasa found, in their inquiries, that Vodacom and MTN are dominantacross the supply chain. Their dominance is even more entrenched by the spectrum-sharing deals that they haveentered into with Cell C, Liquid Intelligent Technologies and Rain. Cell C is wholly reliant on MTN and Vodacomto provide mobile services, and Liquid and Rain are disincentivised from competing aggressively in the mobilemarket due to the lucrative deals they have struck to provide capacity to either Vodacom or MTN, or both. Thishas limited their ability to compete independently- leaving Telkom as the only entity in the position to be able tochallenge the "cosy" market structure head-on.The economic argument being expressed in this extract is that ofand has the consequence ofa) Market failure, externalities.b) Government failure, public goods being under-produced.c) Market failure, inefficient allocation of resources.d) Government failure, production possibilities.1.2 The behaviour of the companies in the extract is in line with which of the following economic schools ofthought?a) The Free Market Schoolb) Marxist Economicsc) Socialist Economicsd) A Planned Economy

Market failure is a situation in which free market fails to allocate resources efficiently.

The economic argument being expressed in this extract is that of and has the consequence of a) Market failure, externalities. b) Government failure, public goods being under-produced. c) Market failure, inefficient allocation of resources. d) Government failure, production possibilities. 1.2 The behaviour of the companies in the extract is in line with which of the following economic schools of thought? a) The Free Market School b) Marxist Economics c) Socialist Economics d) A Planned Economy

The economic argument being expressed in this extract is that of and has the consequence of a) Market failure, externalities. b) Government failure, public goods being under-produced. c) Market failure, inefficient allocation of resources. d) Government failure, production possibilities. 1.2 The behaviour of the companies in the extract is in line with which of the following economic schools of thought? a) The Free Market School b) Marxist Economics c) Socialist Economics d) A Planned Economy

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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