Archive | Power

Price-Fixing Power of a Monopolist: 7 Limitations | Economics

The following points highlight the seven limitations of price-fixing power of a monopolist. The limitations are: 1. Potential Competition 2. Foreign Competitors 3. Existence of Substitutes 4. Fear of Public Agitation or Consumer’s Opposition 5. Government's Interference and Legislations 6. Time Elasticity and Future Expansion of the Business and few Others. Limitation # 1. Potential Competition: The monopolist may fear [...]

By Nipun S|2017-01-13T05:58:20+05:30January 13, 2017|Power|Comments Off

Degree of Monopoly Power | Markets

In this article we will discuss about the degree of monopoly power. Different writers have devised different criteria to measure the monopoly power of a seller. A. P. Lerner has evolved a formula to measure the degree of monopoly power of seller. In his opinion, a firm produces an ideal output at which P = MC. The divergence between the [...]

By Nipun S|2017-01-13T05:58:19+05:30January 13, 2017|Power|Comments Off