Market Power
The ability of a business with a large market share to influence prices, terms of trade, or competitive conditions in it...
Formula
Market Share = (Firm's Sales / Total Market Sales) × 100
Real World
Amazon controls over 30% of UK e-commerce, giving it the power to demand lower prices from suppliers and undercut rivals through loss-leading tactics.
Exam Focus
For 'evaluate' questions, always weigh market power benefits against competition law risks and regulatory intervention.
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