Explore BrainMass

Explore BrainMass

    Market Power and Raising Prices

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    Provide your rationale on whether or not a firm has to possess market power in order to raise prices

    © BrainMass Inc. brainmass.com June 4, 2020, 5:09 am ad1c9bdddf
    https://brainmass.com/business/business-management/market-power-raising-prices-602061

    Solution Preview

    Hello,

    Please find below my research to assist you in responding to your homework.

    Thank you for patronizing BrainMass.

    Sincerely,
    Your OTA

    A buyer or a firm has market power when it can dictate the market price of its products or services. One customer is said to have market power when its vendors don't have many buyers for their products or services. When this is the case, the customer can lower the price and still keep the suppliers. In another situation, a small company with very few competitors can gain market power as it can raise its prices for as long as there are no competitors in the ...

    Solution Summary

    This solution of 351 words describes and defines market power as well as discuss situations when companies raise prices. References used are included.

    $2.19

    ADVERTISEMENT