Xerox, the U.S. Postal Service, and McDonald's have enjoyed significant market power in the past. List and explainthree major factors that have eroded this market power.Market power is eroded whenA. better substitutes become available because the market has less competition.B. better substitutes become available because consumers will not be willing to pay as much for a good.C. fewer substitutes are available because the market has less supply.D. no substitutes are available because consumers have no choices.O E. fewer substitutes are available because consumers are more sensitive to prices.Market power is eroded whenA. existing firms exit the market because this increases the profits of remaining firms.B. more firms enter selling different products because this introduces complements.C.more firms enter selling the same product because this increases competition.O D.barriers block entry of new firms because consumers will not be willing to pay as much for a good.E. existing firms exit the market because this reduces supply.Market power is eroded whenO A. firms selling a different product locate closer because this changes consumer tastes and preferences.B. customers locate closer to the firm because this increases consumer demand.C. customers move further from the firm because this decreases competition.D. firms selling the same product locate further away because this increases each firm's profits.E. firms selling the same product locate closer because this makes consumers more sensitive to prices.

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Xerox, the U.S. Postal Service, and McDonald's have enjoyed significant market power in the past. List and explain three major factors that have eroded this market power. Market power is eroded when A. better substitutes become available because the market has less competition. B. better substitutes become available because consumers will not be willing to pay as much for a good. C. fewer substitutes are available because the market has less supply. D. no substitutes are available because consumers have no choices. O E. fewer substitutes are available because consumers are more sensitive to prices.

Xerox, the U.S. Postal Service, and McDonald's have enjoyed significant market power in the past. List and explain three major factors that have eroded this market power. Market power is eroded when A. better substitutes become available because the market has less competition. B. better substitutes become available because consumers will not be willing to pay as much for a good. C. fewer substitutes are available because the market has less supply. D. no substitutes are available because consumers have no choices. O E. fewer substitutes are available because consumers are more sensitive to prices.

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter14: Monopoly

Section: Chapter Questions

Problem 10PA

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