Exploiting market power is an example of costly-to-duplicate economies of scope.

Question

Quizplus · Accepted Answer

Exploiting market power refers to a situation where a firm with substantial market share can influence market conditions in its favor (e.g. by raising prices above the competitive level). This is an example of an economy of scope that is costly to duplicate because it relies on factors such as brand reputation, relationships with suppliers and customers, and access to distribution channels, which are difficult for competitors to replicate.

Exploiting Market Power Is an Example of Costly-To-Duplicate Economies of Scope