1 The government sought to increase competition in the transport sector by deregulation. Has the government achieved its objective?
2 Can the bus transport sector be described as a perfectly competitive market? Justify your answer.
3 The attempts of Stagecoach to achieve market penetration led to the collapse of Darlington Transport Company. Try to identify the interest groups who would be affected by the closure. Divide them into two categories: winners and losers. Evaluate the overall effect of increased competition on the local economy.
4 Stagecoach was referred to the Monopoly and Mergers Commission (MMC).
a) What is the role of the MMC?
b) On what grounds might Stagecoach be referred to the MMC?
c) What sanctions could be taken against Stagecoach?
d) Are these sanctions likely to influence the company's future behaviour?
