Firms do not have market power in which of the following market structures?
A)perfect competition only
B)perfect competition and monopolistic competition
C)oligopoly
D)monopoly

Question

Quizplus · Accepted Answer

In a perfectly competitive market, firms are price takers, which means they have no market power to influence the market price. In monopolistic competition, firms have some degree of market power through product differentiation, but it is limited by the presence of close substitutes. In oligopoly and monopoly, firms have significant market power due to barriers to entry and limited competition.

Firms Do Not Have Market Power in Which of the Following