If a firm is able to influence the market price of the good it sells, it has market power.

Question

Quizplus · Accepted Answer

Market power refers to the ability of a firm to influence the market price of the good or service it sells, which means that it has some degree of control over the market. If a firm is not able to influence the market price, it is said to be a price taker and does not have market power. Therefore, option A is correct.

If a Firm Is Able to Influence the Market Price