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Why the UK government regulates firms and markets.
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- Words:
- 1535
- Submitted:
- Tue Oct 13 2009
- Mark submitted by Author:
... With the use of examples and economic theory, explain why governments regulate firms and markets. The western world is often viewed as one built on the ideal economic principle of a free market, this is one where supply and demand, rather then any influencing force, dictates the success of those participating companies within it. The reality within the UK economy is not one of complete free competition but is in fact a mixed economy. Though far from being a command economy the UK government has regulated and controlled the market conditions to some degree in all industries. This is most apparent within the laws contained within the Competition Act 1998 which stipulates that any one organisation that distorts, restricts or prevents competition shall be liable to imposed fines either through government bodies or individuals seeking compensation through the courts. (OPSI, Date Unknown) The question of the principles to why the Government
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