Market power refers to the:
A)company that generates electricity to firms
B)buyers and sellers being price takers
C)ability of to influence price
D)market situation that only ever happens with a monopoly seller

Question

Quizplus · Accepted Answer

Market power refers to the ability of a firm or group of firms to influence price in a market. A company that generates electricity to firms (A) is a specific example of a market participant, but not necessarily an indication of market power. Buyers and sellers being price takers (B) means that they have no market power and must accept the prevailing market prices. D is incorrect as market power can exist in markets with multiple sellers, not just a monopoly seller.

Market Power Refers to The