Question

Steve Jobs has achieved a great deal of success. What are some possible negative consequences of the level of power that he holds?

Answer 1

A negative consequence of the power he holds is that his company: Apple, has become the largest company in its market sector: consumer electronics.

For that reason, Steve Jobs has what in economics is known as market power: the ability to set prices above marginal cost, or in other words, the ability to set prices that are higher than necessary for the customer.

This amount of market power reduces the overall benefit for society, and society would be better off if more competitors entered the market to compete with Apple.