Market power is a theory that suggests that firms merge to improve their ability to set product and service selling prices.

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Market power refers to the ability of a firm to control the price and quantity of goods or services in a given market. A firm with market power can charge higher prices and limit the supply of goods or services. Mergers can increase a firm's market power, allowing it to set higher prices and reduce competition.

Market Power Is a Theory That Suggests That Firms Merge