BSc Business Economics Case Study: UK Government Policies

This case study examines business economics, focusing on the tobacco market and the impact of market imperfections and government policies on entrepreneurship and business strategy. The analysis begins by exploring how market failures, such as information asymmetry and externalities, can both hinder and create opportunities for entrepreneurs. The study then delves into how market imperfections affect labor and financial products, highlighting the potential for exploitation and the role of government intervention. The case study further investigates how UK government economic policies, particularly price cap regulations and excise policies, shape business decisions and the overall market structure. The analysis emphasizes the introduction of RPI-X type price regulation and the establishment of agencies like OFSMOKE to manage market failures, promote competition, and ensure public health benefits. The conclusion summarizes the key findings, underscoring the importance of understanding business economics in shaping effective business strategies and government interventions.