Economics A-Level
Market power
What Market power means in Economics A-Level, as defined for AQA.
Definitions of Market power
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Reference: AQA
The ability of individual businesses to set prices, which is impacted by the number of firms in the market.
Monopolies and market imperfections restrict output and raise prices, causing allocative inefficiency.
Topics that use Market power
- Market structures (AQA A-Level)
- The meaning of market failure (AQA A-Level)
Related terms
- Allocative efficiency
- Barriers to entry
- Externalities
- Externalities and public goods
- Income distribution
- Inequality
- Market failure
- Market structures
Using Market power in the exam
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