Jula, Nicolae Marius; Buneci, Bogdan - Facultatea de Ştiinţe Economice, Universitatea … - 2013
If the firm holds a certain market power (Lerner index is positive), then the company's market presence generates a welfare loss. On the one hand, this loss is due to the contraction in demand as a result of practicing a higher price than the competitive price because the higher price...