How might the market power of quad plex cinema be measured

Reference no: EM13204257

Perfect Competition If all the assumptions of perfect competition hold, why would firms in such an industry have little incentive to carry out technological change or much research and development? What condition would encourage research and development in competitive industries? Respond to at least two of your fellow students' postings. Market Power Quad Plex Cinema is the only movie theater in Idaho Falls. The nearest rival movie theater, the Cedar Bluff Twin, is 35 miles away in Pocatello. Thus Quad Plex Cinema possesses a degree of market power. Despite having market power, Quad Plex Cinema is currently suffering losses. In a conversation with the owners of QuadPlex, the manager of the movie theater made the following suggestions: "Since QuadPlex is a local monopoly, we should just increase ticket prices until we make enough profit." Comment on this strategy. How might the market power of Quad Plex Cinema be measured? Also recommend, the options that Quad Plex consider in the long run.

Reference no: EM13204257

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