Market power results in companies that _____ and that have _____ compared to perfect competition.
A)produce less; higher price
B)have higher costs; lower revenue
C)have more elastic demand curves; less variation in costs
D)have lower revenue; more elastic demand curves

Question

Quizplus · Accepted Answer

Market power allows companies to produce less and charge higher prices since they have the ability to control the market. This is in contrast to perfect competition where there are many firms competing, resulting in lower prices and higher output.

Market Power Results in Companies That _____ and That Have