Market power is
A) A characteristic of all market structures.
B) The ability to alter the market price of a product.
C) Most common for competitive firms.
D) Enjoyed by all firms at high levels of output.

Question

Quizplus · Accepted Answer

Market power refers to the ability of a firm to influence the market price of a product. This is not a characteristic of all market structures and is often associated with monopolies or oligopolies rather than competitive firms. Market power typically decreases as output levels increase for a firm.

Market Power Is