Econ 210 - Assn 4-1 - Econ 210 - Assn 4-1 Assignment 4-1...

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Econ 210 - Assn 4-1 Assignment 4-1 ECON 210
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Pete Barnard - Econ 210 - Assn 4-1 What is Market Power? Market power, in economics, is for a company or firm to have the capability to change the market price of a good or service in the market. Once a company or a firm with the market power, they would be able to increase or decrease their prices without losing their customers or clients to their competitors. It is very difficult for a company to obtain the market power in a perfectly competitive market, which would mean, there are many sellers and buyers with the same or similar product(s) or service(s). Companies with the market power has the ability to manipulate the supply and demand curves in their favor. There are a couple of ways for a company or firm to obtain the market power over the other companies or firms of the same market. A company/firm can create a monopoly, owning the complete market of a single or multiple product or service. The company/firm can create a barrier to entry, making it very hard for other companies/firm to enter a particular market, or a company/firm can obtain a patent on a particular product and have exclusive rights to sell that
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This note was uploaded on 02/11/2012 for the course ECON 210 taught by Professor Mrfranklin during the Spring '11 term at Rosalind Franklin University of Medicine & Science.

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Econ 210 - Assn 4-1 - Econ 210 - Assn 4-1 Assignment 4-1...

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