If a firm has market power,it can produce and sell as much output as it desires since no competition exists.

Question

Quizplus · Accepted Answer

Even if a firm has market power, it may not be able to produce and sell as much output as it desires. It still needs to consider factors such as demand, production costs, and pricing strategies to maximize profits. Moreover, new competitors may enter the market, making it difficult for the firm to maintain its market power.

If a Firm Has Market Power,it Can Produce and Sell