Which of the following situations describes the greatest market power?
a. a farmer's impact on the price of corn
b. Volvo's impact on the price of autos
c. Microsoft's impact on the price of desktop operating systems
d. a student's impact on college tuition
I think it is A thoughts,......
2007-02-07 11:23:19 · 2 answers · asked by investing1987 3 in Social Science ➔ Economics
Market Power is seen when an individual or single firm can have an impact on their market. The greater the share f the market the firm controls, the more market power it can exercise. Therefore, in a monopoly, the single firm has all of the market power, in an oligopoly, the few dominating firms each have a large share of the market power, in monopolistic competition, the many firms exercise very little market power, and in perfect competition, each firm has no market power.
Based on this definition, the correct answer is choice 'c' since Microsoft controls a larger portion of its market than any of the other firms in their respective markets.
a farmer is part of monopolistic competition - approaching perfect competition, Volvo is part of monopolistic competition - approaching oligopoly, Microsoft is part of an oligopoly - approaching monopoly, and a student is part of perfect competition.
2007-02-07 13:04:53 · answer #1 · answered by mcaggia 2 · 1⤊ 0⤋
A my good man....corn fuel is the investment to make....in 20 years all theses younger people will be hugging so many trees , its ridiculous. They'll also be driving cars with this new fuel.
Mark my words!!!!
2007-02-07 19:32:57 · answer #2 · answered by Anonymous · 0⤊ 1⤋