Effect of Close Substitutes on Competition and Market Power
The degree of market power a firm possesses is inversely related to the availability of close substitutes for its product. When consumers have access to similar alternative products, competition intensifies, which limits an individual firm's ability to set prices significantly above its costs.
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CORE Econ
Introduction to Microeconomics Course
The Economy 2.0 Microeconomics @ CORE Econ
Ch.8 Supply and demand: Markets with many buyers and sellers - The Economy 2.0 Microeconomics @ CORE Econ
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