ECONOMICS
MARKET FAILURES
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Market Powrer
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Competition
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A lack of competition
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A monopoly
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Detailed explanation-1: -Although Apple cannot completely control the market, its iPhone product has a substantial amount of market share and customer loyalty, so it has the ability to affect overall pricing in the smartphone market.
Detailed explanation-2: -The ability to influence market prices is called market power.
Detailed explanation-3: -In economics, market power refers to the ability of a firm to influence the price at which it sells a product or service by manipulating either the supply or demand of the product or service to increase economic profit.
Detailed explanation-4: -Number of competitors in a market. Elasticity of demand. Product differentiation. Ability of companies to make above “normal profit” Pricing power. Perfect information. Barriers to entry or exit. Factor mobility. 18-Dec-2022