The strength of the market is the company's ability to profitably raise the market price of goods or services on the marginal cost. In a perfectly competitive market, market participants do not have market power. A company with a total market power can raise prices without losing customers to competitors. Market participants who have market power because it is sometimes referred to as "price makers," while those who do not have it is sometimes referred to as "price takers." Significant market power is when the price exceeds the marginal cost and average cost of long-term, so the company to make economic gains.
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