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Market power is the measure of a company’s ability to set the prices of its goods or services in a particular market.
After both of its major rivals were forced out of business, JetRail had sufficient market power to drive ticket prices back up without losing customers.
Strong market power means a company can readily increase pricing without suffering a damaging reduction in revenues. Theoretically, a company with a monopoly has unlimited market power, whereas rival companies in perfect competition have no market power at all. Farmers producing true commodities, such as corn or wheat, provide a classic example of seller with no market power. That is why they can be termed price-takers. In practice, however, market power can be difficult to quantify in many sectors, so each company has to consider carefully the effects any increase in prices will have on its customer base and unit sales.
Tržní síla je míra schopnosti dané společnosti nastavit ceny svého zboží nebo svých služeb na konkrétním trhu.
Poté, co byli oba hlavní rivalové vytlačeni, měla společnost JetRail dostatečnou tržní sílu na to, aby opět zvýšila cenu lístků, aniž by přišla zákazníky.
Vysoká tržní síla znamená, že společnost může snadno zvýšit svoje ceny, aniž by utrpěla snížení tržeb. Teoreticky společnost s monopolem má neomezenou tržní sílu, zatímco společnosti v dokonalé konkurenci nemají žádnou tržní sílu. Farmáři, kteří produkují pravé komodity, jako kukuřici nebo pšenici, jsou klasickým příkladem prodejce bez tržní síly. Proto se mohou klasifikovat jako příjemci ceny. V praxi je však obtížné tržní sílu kvantifikovat v mnoha sektorech, takže každá společnost musí pečlivě zvážit dopady, které bude zvýšení cen mít na její zákaznickou bázi a jednotkový prodej.
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English Editorial Services’ mission is to assist international businesses and organizations of all sizes to communicate clearly, correctly, and persuasively with their business partners and target audiences.
Simply subscribe to receive our Business Term of the Day at no charge to your inbox each business day, with explanation in English and Czech.
