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To Understand Market Power, Double-Dipping Get Experts’ Help from Myhomeworkhelp.Com

Market power is an important phenomenon in economics. Students need to solve many assignments where market power exists prevalently. Double-dipping is another concept which is commonly used with market power. There is a relation between both the concepts. Market power and double homework help providers at myhomeworkhelp.com can facilitate you the extensive support to understand both the concepts in detail.

What is market power?

Market power means any company’s relative potential to influence the price of a product in the given marketplace. A company shows its power by manipulating either the supply level, demand or both. If a company enjoys considerable market power, it is in a position to manipulate market price and hence control its profit margin. It also has the potential to create obstacles to for any other companies to enter the market. Companies with substantial market power are also referred to as “price makers,” as they have the potential to build or change the marketplace price of a product without giving up market share.

Market power is an important chapter in microeconomics with several topics related to the market. Related market monopoly, oligopoly, duopoly, limitation of market power, etc. To more about market power get expert guidance from our market power and double assignment help providers.

What is down-dipping?

The practice of earning two incomes from the government. For example, owning a government job and receiving a pension. In a case of brokerage firms, when a broker considers putting commissioned items into a fee-based account is also an example of double-dipping. The broker earns money from the commission as well as from the client.

Market power and double dipping

To explain the relationship we take the example of the market power and down-dipping. Due to heavy loads of phosphorus and nitrogen, several water surfaces across the globe damaged severely. It gives rise to the heavy demand of existing abatement measures which could have simultaneous effects o both nitrogen and phosphorous. The measure which was already in practice showed that double-dipping reduces total abatement costs to reach preset targets, and minimizes efficiency losses of market power. The measure is most effective when the similar agent dominates both the marketplace.

Citing a real-time example, market power and double homework help experts has shown that an intergovernmental contract on minimizing nutrient loads to the Baltic Sea in North-East Europe cut costs by around 25%. That is only after the introduction of double-dipping. Meanwhile, efficiency losses from market power of dominating country could be minimized by 10%.

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