While calculating the market concentration measures

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determining the market ratio. While calculating the market concentration measures, the market share of all the leading companies is considered (Jaspersen, 2016). It could mean the employment figures, majority using the company's service or the quantity of the products. Concentration in an industry is defined as the notch at which a company makes up for the whole manufacturing in the market (Jaspersen, 2016). When density is low, the indication is that an organization is not manipulating the market invention hence the competition is considered high. Market power refers to the ability of a company to regulate the price of merchandise by controlling supplies, demands, or both. In other terms, it also applies to economic strength whereby groups that are possessing market power refer to price makers (Veljanovski, 2013). The word is adapted from the fact that they can regulate the prices of various commodities. However, market power diverges depending on the operating system of the economy such as perfect
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MARKET POWER AND COMPETITION IN HEALTH CARE 3 competition, monopoly, oligopoly, or monopolistic competition (Veljanovski, 2013). In ideal match, there are many organizations which sell a standard product while in merger there is only one source of a specific good. Oligopoly refers to a scenario where an agency has the authority to bar other companies from engaging in the same business. In monopolistic competition, many
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