What Are the Consequences of Misusing Market Power?
When companies misuse market power, it can lead to several negative outcomes, including:
Reduced Competition: Competitors may be forced out of the market, leading to monopolies or oligopolies. Higher Prices: Consumers may have to pay higher prices due to the lack of competitive pressure. Lower Quality: Without competition, dominant firms may reduce the quality of their products or services. Innovation Stagnation: Reduced competition can lead to less innovation and fewer choices for consumers.