When a seller has a high level of market power, the seller
A)produces a product that is identical to the output of other companies in the market.
B)is in a market with growing demand.
C)is one of many sellers selling in its market.
D)can raise its price without losing many customers.

Question

Quizplus · Accepted Answer

When a seller has a high level of market power, it means that the seller has a significant market share and few competitors, allowing the seller to influence the market price. In this scenario, the seller can raise its price without losing many customers, as there are few alternatives available in the market.

When a Seller Has a High Level of Market Power