The Development of Market Power by a Firm Is Considered

The development of market power by a firm is considered to be a market failure because firms with market power will

A) Produce more and charge a lower price than what would be socially optimal.
B) Tend to ignore external costs.
C) Produce less and charge a higher price than what would be socially optimal.
D) Not respond to consumer demanD.Market power allows one or more producers to attain discretionary power over the market's response to price signals.Firms may use that discretion to enrich themselves by keeping output low and prices high.