Market power
What Market power means in Economics B A-Level, as defined for Pearson Edexcel.
Definitions of Market power
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Reference: Pearson Edexcel
Control of enough of a market for a merged firm to raise prices, which the Competition and Markets Authority examines when two large firms propose a merger.
The ability of a larger firm to dictate higher prices to consumers and negotiate lower costs from suppliers.
A firm's ability to influence the price of an item by exercising control over its demand or supply.
Price-making power that a firm must possess for price discrimination to succeed.
Topics that use Market power
- Business regulation (Pearson Edexcel A-Level)
- Growth (Pearson Edexcel A-Level)
- Oligopoly (Pearson Edexcel A-Level)
- Research and development (R&D) and innovation (Pearson Edexcel A-Level)
Related terms
- Asymmetric information and market failure
- Competition regulation
- Competitive advantage
- Concentration ratio
- Consumer protection
- Consumer protection legislation and standards
- Culture clash
- Economies of scale
Using Market power in the exam
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