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Economics (AS & A Level) · Oct / Nov 2021 · Paper 31 · Question 3

9708Different market structures

A government deregulates several industries with the aim to increase allocative and productive efficiency. Which change makes it less likely that the government will meet its aim?

  1. Aan increase in the availability of cheap loans to start new businesses
  2. Ban increase in merger and takeover activity in the industries
  3. Can increase in information about prices for consumers available on the internet
  4. Da reduction in fixed costs in the deregulated industries

As printed in the paper

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Correct answer: B. an increase in merger and takeover activity in the industries

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