Firm Size Alone Is Not the Same as Market Power

Firm size alone is not the same as market power, as illustrated by

A) a large automaker raising its prices without concern about competition
B) a movie theater in an isolated community facing stiff competition
C) wheat farmers selling their commodity product to farm cooperatives
D) the only newspaper in a metropolitan area facing competition for advertising sales from TV, radio, and the Internet
E) None of the answers is correct