Which of the following statements is TRUE?
A) Market power is the ability to raise price and sell more units of a good.
B) Market power may result from government regulations and patent protection.
C) A monopoly is a firm without market power.
D) All of the answers are correct.

Question

Quizplus · Accepted Answer

Market power refers to the ability of a firm to affect the market price of a good or service. This can be achieved through various means such as controlling the supply of the good or having a strong brand image. Government regulations and patent protection can also give a firm market power by limiting competition in the market. A monopoly, on the other hand, is a market structure where there is only one seller of a particular good or service, and they have complete market power. Therefore, option B is the only true statement.

Which of the Following Statements Is TRUE