A)Who has more monopoly power---Wal-Mart or the concessionaire who has acquired the franchise to sell beer, hot dogs, colas, candy, etc., at a Washington Redskins football game? Explain.
B)Who has more monopsony power---Wal-Mart or teams in the National Football League (NFL) that are negotiating with players from college football teams that the teams just have drafted?
2 answers
How do you measure power?
Definitions are as follows: so I would assume that you can "measure" the power by how much profit each obtain in setting their prices??
"Monopoly power" is the degree of power held by the seller to set the price for s specific good/product/service.
"Monopsony power" means there's an exitence of one buyer (or very few buyers) forcing sellers to accept a lower price.
"Monopoly power" is the degree of power held by the seller to set the price for s specific good/product/service.
"Monopsony power" means there's an exitence of one buyer (or very few buyers) forcing sellers to accept a lower price.