What does it mean to have market power

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1. What does it mean to have market power? Are firms with market power extremely profitable?

2. Why would a merger reduce costs? Why would a merger increase markups? Why do many mergers fail nonetheless?

3. What information would you like to have to plan advertising spending?

4. Why might banning advertising drive up prices?

5. Offer examples of attribute-based product differentiation and information-based product differentiation.

Reference no: EM13269864

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