CIMA Fundamentals of Business Economics BA1 Question # 133 Topic 14 Discussion

CIMA Fundamentals of Business Economics BA1 Question # 133 Topic 14 Discussion

BA1 Exam Topic 14 Question 133 Discussion:
Question #: 133
Topic #: 14

The Competition and Markets Authority is a regulatory body in the UK. In 2017, the CMA found the proposed merger of Heineken and Punch Pubs in breach of its competition laws. Heineken and Punch Pubs have agreed

to divest in pubs in areas where they are the two dominant pub companies.

Which of the following are ways in which consumers might directly benefit from this decision?

Select ALL that apply.


A.

Heineken/Punch Pubs will not be able to charge excessive prices for alcoholic beverages served at their pubs


B.

There will be a greater variety of pubs for consumers to choose from in certain areas


C.

Heineken will divest in a certain number of pubs where the merger would have created monopolies


D.

The companies' divestment of pubs in certain areas could lead to the closure of the majority of pubs in said area


E.

The CMA will use this decision as a precedent for others in the future


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