Economic implications on market power

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Most Apple users are very committed to Apple products, despite the fact that there are substitute products made by other firms (e.g., Google and Microsoft products). In this regard, Apple can be viewed as having close to Monopoly power. One of the things that has helped Apple is its integrated "ecosystem" that connects across many devices and platforms. Explain, in detail, from an economic perspective how this integrated ecosystem has enabled them to maintain such high levels of market power. You answer should include a discussion of switching costs and how they are relevant in this context, and their economic implications on market power.

Reference no: EM133065184

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