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    Market power in governments should do to a company

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    What is market power? What governments should do to a company with market power?

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    Market Power
    Market power is defined as the capability of a company to by its self to raise prices above market levels without losing sales and profitability.
    Factors frequently considered in determining whether a firm has market power include:
    ? Market Share
    ? Barriers to Market Entry
    ? Pricing Behavior
    ? Profitability
    ? Vertical Integration

    Market share is a key component and can be measured in several ways?
     including monetary value,
     units of sales and production and
     production capacity.

    Market share alone can be an inaccurate measure of market power since a company with significant market share will have enough market power to capability to behave anti-competitively on its own. ...

    Solution Summary

    Market power is defined. What governments should do to a company with market power is determined. AT&T is examined.