Overview
Market power and pricing strategies are crucial concepts in economics that help businesses determine how to set prices for their products. Market power allows firms to influence prices, which can lead to higher profits but may also reduce competition. Understanding the dynamics of supply and demand,...
Key Terms
Example: A monopoly has significant market power.
Example: Cost-plus pricing adds a markup to the cost.
Example: High demand with low supply raises prices.
Example: Luxury goods often have high elasticity.
Example: A product costing $10 may be sold for $15.
Example: A brand-name product may be priced higher due to its reputation.
Related Topics
Key Concepts
Market PowerPricing StrategiesSupply and DemandElasticity of Demand