The demand for o 2 characteristics of markets in manufactured goods (1defferentiated products (2)a few relatively large suppliers Firms face downward sloping demand curves Small numbers of competitors or the preference of consumers for a specific products bestows some degree of market power on firms, and the competition will be imperfect Market power is the ability to profitably raise price above marginal cost lo is the study of the creation exercise maintenance and effects of market powerThe demand for IO • 2 characteristics of markets in manufactured goods • (1)defferentiated products • (2)a few relatively large suppliers • Firms face downward sloping demand curves • Small numbers of competitors or the preference of consumers for a specific products bestows some degree of market power on firms, and the competition will be imperfect. • Market power is the ability to profitably raise price above marginal cost. • IO is the study of the creation, exercise, maintenance, and effects of market power