Market power refers to the
A) firm's ability to control the industry's supply and demand
B) joining of firms into a cartel
C) firm's ability to control market price
D) market's ability to control a firm's price
E) industry's ability to control market price

Question

Quizplus · Accepted Answer

Market power is the ability of a firm to influence or control the price of the product it sells, allowing it to set prices above marginal cost and earn abnormal profits.

Market Power Refers to the