Monopoly Power
Ability to control price due to lack of competition.
Formula
Monopoly Power → Price > Marginal Cost
Real World
Google controls around 90% of global search advertising, giving it significant monopoly power to set premium ad prices that smaller rivals cannot undercut.
Exam Focus
Never just state a firm 'has monopoly power' — explain the specific source (e.g. patent, network effects) to access higher mark-scheme levels.
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