Explain the structure conduct performance framework, Business Economics

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QUESTION

(a) Explain and discuss the Structure Conduct Performance framework

(b) The hypotheses of interest in the Structure Conduct Performance framework are as follows-

Hypothesis 1: The exercise of market power should increase as concentration increase

Hypothesis 2: The greater the barriers to entry, the greater the exercise of market power

Discuss available empirical evidence on each of these hypotheses

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