Managers in firms with market power can:
A)not influence price.
B)develop strategies that involve both the demand and supply sides of the market.
C)only focus on the demand side of the market.
D)none of the above.

Question

Quizplus · Accepted Answer

Managers in firms with market power can develop strategies that involve both the demand and supply sides of the market, such as setting prices or adjusting output levels to maximize profits while considering the impact on consumer demand and potential supply by competitors. They have the ability to influence prices to some extent, so they should consider both demand and supply factors in their decision-making process. Therefore, options A and C are not accurate, and option D is incorrect as well.

Managers in Firms with Market Power Can