The Competition and Markets Authority (CMA) launched a formal market investigation into the veterinary sector after finding that rapid consolidation by large corporate groups, such as VetChain, has led to a "substantial lessening of competition" in several local areas, including Swindon, Gloucester, and Cheltenham. Corporate groups have been buying up independent local vet practices, often retaining the original branding so consumers are unaware of the change in ownership. The CMA noted concerns that this consolidation has driven up prices for treatments, diagnostics, and medicines, whilst reducing choice and transparency for pet owners.
Discuss the likely impact of "a substantial lessening of competition" in the local veterinary services market in Swindon, Gloucester, and Cheltenham (Extract C).
92 exam-style questions on Edexcel A A Level Economics 3.4 Market structures, covering 3.4.1 Efficiency, 3.4.2 Perfect competition, 3.4.3 Monopolistic competition, 3.4.4 Oligopoly, 3.4.5 Monopoly, 3.4.6 Monopsony, and 3.4.7 Contestability. Each one has a worked solution and a mark scheme showing where the marks go.