AQA Economics 2020 Paper 1 Qs 13 – a response
In December 2018, the Competition and Markets Authority (CMA) announced a range of policies to prevent firms charging existing customers more than new customers. Firms supplying financial services, mobile phones and broadband are no longer allowed to discriminate against loyal
customers renewing their contracts.
1 3 Explain why imperfect information can lead to market failure. [15 marks]
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