The essence of market power is the ability to alter the price of a product.

Question

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Market power refers to the ability of a firm or group of firms to influence the price of a product in the market. This may be due to factors such as a lack of competition, high barriers to entry for new firms, or control over key resources. By having market power, a firm can increase prices and earn higher profits without losing too many customers to competitors.

The Essence of Market Power Is the Ability to Alter