Market power can be gained through:
A)increased product differentiation.
B)decreased barriers to entry.
C)higher price competition.
D)increased entry of substitute products.

Question

Quizplus · Accepted Answer

Increased product differentiation can create brand loyalty and make customers less sensitive to price changes, giving the firm more market power. Lowering barriers to entry and increased competition from substitutes would decrease market power, and higher price competition would suggest there is less market power to begin with.

Market Power Can Be Gained Through