A firm is said to have "market power" only when

Question

Quizplus · Accepted Answer

Market power refers to the ability of a firm to influence the price of its product in the market. It means that the firm has some degree of control over the market price, unlike a perfectly competitive market where the price is determined by the market forces of supply and demand. The other options are not necessarily indicative of market power. For example, being one of 25 or fewer firms in the industry does not always guarantee market power, and having the ability to choose its own profit-maximizing level of output is a characteristic of all firms, not just those with market power.

A Firm Is Said to Have "Market Power" Only When