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Suppose a small group of manufacturers in the auto parts industry currently enjoy considerable monopoly power. How would you expect monopoly power in this industry to change in the long​ run?.

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The demand curve that each firm must deal with will become more elastic as the industry's number of businesses increases. Therefore, monopoly power will gradually wane.

What is monopolistic power defined as?

  • A firm's demand curve will evolve in a monopolistic competitive market over time until it becomes parallel to the firm's average total cost curve. As a result, the business will only be able to break even rather than make an economic profit.
  • An attempt to raise prices above the level of competition may result in enough new competitors even in the absence of an existing rival, making the price increase unprofitable. In that case, even though the corporation may currently have a dominant market share, it lacks monopoly power.    

To learn more about Monopoly power refer to:

https://brainly.com/question/373401

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