Definition For Economic Power

A country that has a lot of importance because it can produce buy and sell a lot of products.

Definition for economic power. The exercise of market power leads to reduced output and loss of economic welfare. For other types of power see power disambiguation. It increases their freedom to make decisions that benefit themselves alone and reduces the ability of any outside force to reduce their freedom. Market power is the ability of a firm to profitably raise the market price of a good or service over marginal cost.

National economic power implies that a government is in a position to use offer or withhold such assets even when they are in private hands for example by mandating trade embargoes or imposing controls on exports to. Economic power can be broadly defined as the ability to control or influence the behavior of others through the deliberate and politically motivated use of economic assets. Economists use several concepts featuring the word power. A country that has a lot of importance because it can produce buy and sell a lot of products.

Freebase 0 00 0 votes rate this definition. Economic power can be divided into different categories purchasing power i e the ability of any amount of money to buy goods and services. Jump to navigation jump to search. From wikipedia the free encyclopedia.

Market power refers to the ability of a firm or group of firms to raise and maintain price above the level that would prevail under competition is referred to as market or monopoly power. Those with more assets or more correctly net worth have more power of this sort.