A common strategy for a seller to increase its market power is to
A)raise price.
B)reduce price.
C)differentiate its product.
D)increase output.

Question

Quizplus · Accepted Answer

Differentiating the product can increase the perceived value of the product, leading to a competitive advantage and increased market power. Raising prices can lead to a decrease in demand and may not be sustainable in the long run. Reducing prices may lead to increased demand but can also decrease profit margins. Increasing output may lead to lower costs but can also lead to a decrease in prices and profit margins.

A Common Strategy for a Seller to Increase Its Market