To assess your ability to:
- Analyze the relationships between revenues, costs, and profits in a variety of market settings.
- Discuss government regulations of less than competitive market structures and firms.
- Discuss economists’ approach to evaluating potential mergers and acquisitions.
- Evaluate the extent of a company’s market power.
- Write a one to two page paper, addressing the following:
- Describe in your own words the concept of market power.
- Provide an example of a firm exercising its market power.Referring to your example above, answer the following questions:
- What are the sources of the firm’s market power?
- Can they be sustained over a short run / long run?
- Answer the question below in your conclusion:
- Why is it hard for a firm to maintain market power over a Long Run?