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| Topic: |
Business
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| Number of pages / Number of words: |
4 / 1105 |
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In fact, they request all restrictions be reinstated arguing the court failed to analyze properly the legal standards of the case. They argue that the court failed to analyze properly what it meant of having a demand elasticity of 2. The author agrees that when evidence of demand elasticity is available to measure market power directly, no market share criterion of market power is either necessary or appropriate...
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The author agrees that when evidence of demand elasticity is available to measure market power directly, no market share criterion of market power is either necessary or appropriate. If a firm is said to have an elasticity of 2, then the price is said to be twice the marginal cost, thus this large excess in price over marginal cost is generally a strong indicator of market power...
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