The power a firm has to set is own price is called:
A) competition.
B) discrimination.
C) legislative control.
D) monopoly power.

Question

Quizplus · Accepted Answer

The power to set its own price, outside the influence of competitive market forces, is a defining characteristic of a monopoly. Monopoly power is the ability to set prices at a level that is higher than would prevail under competitive conditions. A monopoly occurs when there is only one provider of a particular product or service, or when a provider has such a significant advantage over competitors that it effectively operates as a single entity in the market.

The Power a Firm Has to Set Is Own Price