A firm that has a great deal of control over the price of a good is said
A) to function in a black market.
B) to create an externality.
C) to have monopoly power.
D) to be in an antitrust position.

Question

Quizplus · Accepted Answer

A firm that has a great deal of control over the price of a good is said to have monopoly power. This means that they have the ability to set prices that are higher than competitive levels, leading to reduced consumer surplus and increased profits for the firm. Monopoly power occurs when a single firm has a large share of the market and there are significant barriers to entry that prevent other firms from competing effectively.

A Firm That Has a Great Deal of Control Over