Write a one to two page paper, addressing the following:
a. Describe in your own words the concept of market power.
b. Provide an example of a firm exercising its market power.Referring to your example above, answer the following questions:
- What are the sources of the firm’s market power?
- Can they be sustained over a short run / long run?
c. Answer the question below in your conclusion:
- Why is it hard for a firm to maintain market power over a Long Run?