A firm has market power if it can raise price above marginal cost and not lose all its customers as a result. Think about your own experience as a consumer. Can you think of an examp
A firm has market power if it can raise price above marginal cost and not lose all its customers as a result. Think about your own experience as a consumer. Can you think of an example of dealing with a firm that had significant market power? What was the source of this market power?
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