Consider price discrimination. In order to capture more surplus, the firm must have some market power.

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Price discrimination involves charging different prices to different consumers depending on their willingness to pay. This strategy is only possible if the firm has some degree of market power and is able to segment its market effectively. Otherwise, if the firm faces perfect competition and charges different prices, consumers will simply switch to whichever firm offers the lowest price, eroding the firm's ability to capture surplus. Price discrimination is a strategy used by firms to charge different prices to different groups of consumers for the same product or service. In order for a firm to successfully implement price discrimination and capture more surplus, it must have some degree of market power, which enables it to charge higher prices to certain groups of consumers who are willing to pay more. Without market power, the firm would be forced to charge the same price to all consumers, regardless of their willingness to pay, and would not be able to capture as much surplus.

Consider Price Discrimination