Author Question: What is market power? What kinds of firms have market power, and why is it ... (Read 101 times)

tiffannnnyyyyyy · **on:** Jun 29, 2018

What is market power? What kinds of firms have market power, and why is it used?

Question 2

What are micro-loans? Where have they been used successfully?

efwsefaw · **Reply #1 on:** Jun 29, 2018

Answer to Question 1

Market power is a type of barrier that keeps out competition. It exists when a firm can control pricing in an industry. Monopolies and firms with large market share often have market power. This market power allows these firms to lower prices, driving out new businesses in the marketplace that cannot compete with the lower prices.

Answer to Question 2

Micro-loans are very small loans, typically around 100. They allow small entrepreneurs, particularly in developing countries, to start businesses and make money. Micro-loans have a high repayment rate and have allowed many low-income people in developing countries, especially women, to make money for their families.