Legal Dictionary of Pakistan

market power

The ability to reduce output and raise prices above the competitive level -specifically, above marginal cost - for a sustained period, and to make a profit by doing so. ( In antitrust law, a large amount of market power may constitute monopoly power. See MONOPOLIZATION. Cf. MARKET SHARE. "In economic terms, market power is the ability to raise prices without a total loss of sales; without market power, consumers shop around to find a rival offering a better deal." 54 Am. Jur. 2d Monopolies, Restraints of Trade, and Unfair Trade Practices § 49, at 110 n.87 (1996).