An example of a firm with market power is a
A) delicatessen in New York.
B) cable TV provider in St. Louis.
C) clothing store in Los Angeles.
D) family farm in Illinois.

Question

Quizplus · Accepted Answer

A cable TV provider in St. Louis is an example of a firm with market power because they are likely the only or one of few options for consumers in the area to access cable TV services. This gives them some control over pricing and the ability to exert their influence on the market. A delicatessen, clothing store or family farm may have some local influence, but they do not have the same level of market power as a cable TV provider.

An Example of a Firm with Market Power Is a