Which is the best example of an economic actor with market power?
A)A café in Melbourne
B)A coffee producer in Colombia
C)A large supermarket in a small rural town
D)A coffee drinker

Question

Quizplus · Accepted Answer

A large supermarket in a small rural town has market power because it is the only supplier of goods in the area, and therefore customers have to buy from them regardless of price. This gives the supermarket the ability to raise prices above competitive levels without losing customers.

Which Is the Best Example of an Economic Actor with Market