(a)[3]
What evidence is shown in the article that the UK mobile phone companies operate in an imperfect market structure?
(b)[4]
Explain the statement ‘one result will be that cross-subsidies will disappear and the price of a new handset will go up considerably.’
(c)[4]
The article says the High Court decision will cost the companies £1.5 billion to £2 billion. Explain how the phone companies might react in order to keep their profit levels.
(d)[3]
Explain with the aid of a diagram how the existence of termination charges would affect consumer surplus.
(e)[6]
Does the information lead you to agree with the spokesperson when he said that consumers should not necessarily regard the decision as a good thing?