Sunrich Company can process solar energy into an inexpensive fuel for internal combustion engines. As an innovator in its market, Sunrich currently has the power to affect the price of its product. This is

Question

Sunrich Company can process solar energy into an inexpensive fuel for internal combustion engines. As an innovator in its market, Sunrich currently has the power to affect the price of its product. This is​

Quizplus · Accepted Answer

Sunrich Company having the power to affect the price of its product indicates that it has market power, which is the ability of a firm to influence the market price of a good or service. Predatory pricing refers to setting artificially low prices to drive competitors out of the market, which is not applicable in this scenario. Price discrimination involves charging different prices to different customers for the same product or service, which is not mentioned in the scenario. Monopsony power refers to the ability of a single buyer to influence the market price, which is not applicable in this scenario as Sunrich Company is the seller.

Sunrich Company Can Process Solar Energy into an Inexpensive Fuel