Firms do not have market power in which of the following market structures?

Question

Quizplus · Accepted Answer

Perfect competition is a market structure where firms do not have market power because they are price takers and have no ability to influence the price of the product they sell. In monopolistic competition, a firm has some market power as it can differentiate its product from its competitors. In oligopoly, firms have market power because they can influence the price in the market by colluding or engaging in strategic behavior. In a monopoly, a single firm has complete market power and can set the price for the product it sells.

Firms Do Not Have Market Power in Which of the Following