Market Power (Business Enviroment Module)
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...power takes place. Under market power, the firm can act in many ways such as forming cartels, monopolies and so on. If this does occur, abuse of market power occurs when firms set high prices, offer less choice, restrict competition and allocate resources inefficiently.
According to Vickers (2005) competition is the key in market economy. But this competition can also increase the use and abuse of power by many organizations. Over the years, US has seen much competition in its market that has firms have somewhat shifted away from the competition agreements and law. In order to keep... INTRODUCTION When a firm owns a significant amount of market share like more than 25%, the notion of market...