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1 September, 15:02

Economists, as well as courts dealing with antitrust cases, often use which concept to measure whether a firm has monopoly power in supplying a good or service in the given market?

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  1. 1 September, 18:28
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    They use crossprice elasticity to determine monopoly power. In this case, this is how responsive a change in demand is of one good to the change in price of related good. The more elastic a product is, the more likely the product is to change its demand when another good changes its price.
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