Unit 2.11 · Market Failure: Market Power
Risks of Market Power
AO3HL
Syllabus Requirement
Market dominance may harm consumers via higher prices, limited output, and reduced choice.
Assessment Objectives
AO3Synthesis and Evaluation
Summary
This topic discusses market power, which is the capacity of a firm or consumer to influence prices in a market. Understanding market power is essential in economics as it affects market structures and competition levels, impacting consumer choices and overall market efficiency.