Sub: Economics Topic: Micro Economics
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Question:
A descriptive analysis of the concept and relevance of market power with a
special focus on the features of a monopoly market structure and an emphasis
on transportation costs.
"Examine the regulation of market power and social costs of transportation." The key topics to
research about would be competition, concentration and market power transportation. I AM so
sorry I really need help here I have to be ok in this class even though it does not have to do any
with my work and it has to be APA style Arial 12 double space and please include all references.
Solution:
Regulation of market power and social costs of transportation
Economists assume that there are a number of different buyers and sellers in the marketplace.
This means that we have competition in the market, which allows price to change in response
to changes in supply and demand. Furthermore, for almost every product there are substitutes,
so if one product becomes too expensive, a buyer can choose a cheaper substitute instead. In a
market with many buyers and sellers, both the consumer and the supplier have equal ability to
influence price.
In some industries, there are no substitutes and there is no competition. In a market that has
only one or few suppliers of a good or service, the producer(s) can control price, meaning that a
consumer does not have choice, cannot maximize his or her total utility and has very little
influence over the price of goods.
A monopoly is a mar