Market Power, Barriers to Entry, and Natural Monopolies
Learn about market power, barriers to entry, natural monopolies and how they enable supracompetitive prices.
Transcript
In this lesson, we’ll learn about market power, barriers to entry, and natural monopolies and how they enable supracompetitive prices.
I. Market Power
Imperfect competition exists when one or more actors exercise market power. Market power is the ability to raise price above marginal cost over the long term, thus allowing the seller to earn an economic profit. It can be most easily exercised by a monopoly,...
