Market power is enjoyed by
A) only large firms like General Motors.
B) all firms.
C) medium to large firms.
D) pure monopolists exclusively.
E) any firm that can raise its price without losing all of its sales.

Question

Quizplus · Accepted Answer

Market power is the ability of a firm to raise its price without losing all of its sales. This means that any firm, regardless of its size, can enjoy market power as long as it has some level of control over its pricing and can maintain demand for its product. Therefore, option E is the best choice.

Market Power Is Enjoyed by