Market Power Over Consumers

Question 1

What can firms do if they increase size?

Answer 1

Increase market power and increase prices

Question 2

At what % of market share can firms exploit consumers?

Answer 2

25%

Question 4

Large firms PED

Answer 4

inelastic PED
Allows them to set up higher prices

Question 5

What can lack of competition help with?

Answer 5

Develop and maintain customer loyalty
Charge higher prices