Answer to Question #268638 in Economics of Enterprise for KWARI

Question

1.1 Read the following extract and answer question 1.1, 1.2. (4 marks)

Evidence of domination

Both the Competition Commission and Icasa found, in their inquiries, that Vodacom and MTN are dominant across the supply chain. Their dominance is even more entrenched by the spectrum-sharing deals that they have entered into with Cell C, Liquid Intelligent Technologies and Rain. Cell C is wholly reliant on MTN and Vodacom to provide mobile services,

Source: https://techcentral.co.za/mcleod-is-wrong-about-telkom/110373/

Accessed: 19/08/21

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.

Answer 1

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