When a firm has market power, it can: A

Marketing Jan 09, 2021

When a firm has market power, it can:

A. sell as much as it wants at any market price

B. control the number of firms that will operate in an industry

C. influence the market price of the good it sells

D. choose to disregard government regulation

Expert Solution

It says that if a firm has market power if the demand curve is sloping downwards so the firm can change the price. Moreover, a firm that has market power can raise the price of a good above the equilibrium price, especially if the firm is under monopoly. Therefore, the correct answer is C. influence the market price of the good it sells

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