The ability of a firm to raise the price without losing all its sales to rivals is called
A)market power
B)social regulation
C)economic regulation
D)antitrust policy
E)natural monopoly

Question

Quizplus · Accepted Answer

Market power refers to a firm's ability to raise prices without losing all of its sales to competitors. This is often achieved when a firm has significant market share or is the only supplier in a market (i.e. a natural monopoly). It allows the firm to have some control over the market and charge higher prices, leading to higher profits.

The Ability of a Firm to Raise the Price Without