The monopoly power of a firm in an imperfectly competitive market is greater the larger the firm's output relative to the industry output.

Question

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In an imperfectly competitive market, a firm's monopoly power is greater when it has a larger share of the market output. This is because the firm has more control over the market supply and can influence the price of the product. As the firm's output increases relative to the industry output, it becomes more dominant and can exert even greater market power.

The Monopoly Power of a Firm in an Imperfectly Competitive