ABSTRACT
The Monopolies Commission always attempts an appraisal of the price level established by dominant organizations. The Commission has considered a measurement of rate of return on capital to represent the most valid criterion in assessing the public interest implications of price levels. Criticisms have been levelled at the Commission in relation to the particular manner in which it has calculated rate of return on capital. This chapter outlines the several approaches which may be adopted, and appraises the form of calculation adopted by the Monopolies Commission. The appraisal is limited to the calculation of rate of return on capital as an aid to policy conclusions in the field of market dominance.
