The negative outcomes of market power do NOT include
A)higher prices.
B)smaller demand.
C)larger economic profits.
D)higher costs.

Question

Quizplus · Accepted Answer

Market power typically leads to higher prices, larger economic profits, and higher costs, but does not necessarily lead to smaller demand. In fact, firms with market power may sometimes have more control over demand and may be able to manipulate it to some extent through advertising and other marketing strategies.

The Negative Outcomes of Market Power Do NOT Include