To what does market power refer?
A)The ability of consumers to dictate what products should be produced.
B)The ability of a firm to advertise its product and succeed in selling more output.
C)The ability of a firm to sell at a lower price than rival sellers.
D)The ability of a firm to charge a price higher than the marginal cost of production.

Question

Quizplus · Accepted Answer

Market power refers to the ability of a firm to charge a price higher than the marginal cost of production. This means that the firm can raise prices above the level that would prevail in a competitive market, giving it the ability to earn higher profits.

To What Does Market Power Refer