In a Bertrand model,market power is a function of

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In a Bertrand model, market power is a function of product differentiation. This means that firms can increase their market power by offering unique and differentiated products that make it difficult for consumers to easily substitute their good with another firm's good. This leads to less competition and thus a greater ability for firms to have pricing power. Marginal cost and price elasticity of supply are important factors in determining a firm's profit maximization point but do not directly affect market power. The number of firms in the market does affect market power, but it is not the only determinant factor.

In a Bertrand Model,market Power Is a Function of