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Discuss the View That Monopoly Power Is the Natural Result for Firms Who ‘Win the Game’ of Competition?

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Discuss the view that monopoly power is the natural result for firms who ‘win the game’ of competition?

Monopoly power or market power is the ability for a business to earn high levels of profit by being able to choose their pricing strategies in their market and being able to raise to what they want in the same market and don’t have to worry about to losing costumers if they have true monopoly power then price still shouldn’t effect there demand. Being a monopoly means they are the only supplier in that market. They are able to keep their prices high for a sustainable amount of time. There are only certain companies that are able to higher prices for measurable periods of time these companies have little or no competition in the market so that by increasing the prices wouldn’t mean a loss of costumers and income because there is no competition in there market. It lies at one end of the spectrum of perfect competition it means that there is only one seller in that market that they are able to be the dominant firm and exert a considerable amount of power. (William J. Baumol EconomicsPrinciplesP264-269)
There are no preliminary assumptions about the bargaining power of any of the players, and, in particular, no player is assumed a priori to have any price setting power. Provide general core results for monopoly, and their results suggest the following conclusions. First, if the seller has the capacity to supply all of the buyers, the outcome is almost completely indeterminate. The seller effectively faces a bilateral bargaining problem with each buyer. (Harborne W. Stuart, Jr.. (2007). Creating monopoly power. Science Direct. 25 (2), 1-5.) There is no one that gets the change and chooses the prices of the product in that market the ability to be able to change the price of the product in that market depends on the size and strength of the company...

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