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Question Description
Write a one to two page paper, addressing the following:
a. Describe in your own words the concept of market power.
b. Provide an example of a firm exercising its market power.Referring to your example above, answer the following questions:
What are the sources of the firm’s market power?
Can they be sustained over a short run / long run?
c. Answer the question below in your conclusion:
Why is it hard for a firm to maintain market power over a Long Run?
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