Problems
and questions :
Market Power
In economics, market power is the ability of a firm to alter the
market price of a good or service. A firm with market power can raise prices
without losing all customers to competitors.
When one
buyer or seller in a market has the ability to exert significant influence over
the quantity of goods and services traded or the price
at which they are sold. Market power does not exist when there is perfect
competition, but it does when there is a monopoly, monopsony, or oligopoly.
A firm with
market power can :
A. Beats
its competitors.
B. Create perfect competition.
C. Buy cheap materials.
D. Dictate prices.
B. Create perfect competition.
C. Buy cheap materials.
D. Dictate prices.
The answer :
Can : d. dictate
prices, because: the market power of
a company, are : the company's ability to profitably raise the market price of
goods or services on the marginal costs. [1] Or the market power of a company can
raise prices without losing all customers to competitors. Because the view that
the answer is : d. dictate prices.
Reference
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