When a producer can control the market price for the good it sells,the producer
A)Is an entrepreneur.
B)Is certain to make a profit.
C)Has market power.
D)Is a perfectly competitive firm.

Question

Quizplus · Accepted Answer

A producer who can control the market price for the good it sells has market power, which means they have the ability to influence the market price and can potentially earn higher profits. This is usually associated with firms operating in imperfectly competitive markets, such as monopolies, oligopolies, and monopolistic competition. Entrepreneurs are individuals who start and operate businesses, but they may not necessarily have market power. Making a profit is not certain for any firm, including those with market power, as it depends on a variety of factors such as costs, demand, and competition. Perfectly competitive firms are price takers and have no market power.

When a Producer Can Control the Market Price for the Good