Question 1

"A horizontal or vertical agreement between enterprises is prohibited insofar as the agreement has the object or effect of significantly preventing, restricting or distorting competition in any market for goods or services."

(Act 712)

a)Based on the above quote, MyCC may also consider any barriers to entry when assessing dominance. Explain THREE (3) potential barrier to entry.(6 marks)

"An enterprise is prohibited from engaging, whether independently or collectively, in any conduct which amounts to an abuse of a dominant position in any market for goods or services."

(Act 712)

b)Based on the above quote, discuss TWO (2) abuse of dominant position.(4 marks)

Question 2

Is natural monopoly efficient? If it is not efficient, how can it be made so by public utility regulation? (10 marks)