What is Market Power? a

Marketing Jan 14, 2021

What is Market Power?

a. Is the influence of the biggest company in the Market.

b. Is the power that firms exercise when their marginal cost is low

c. Is the ability to set prices above marginal cost d.Is the ability to influence consumers decisions

Expert Solution

The correct answer is (c).

The market with market power decided to set the commodities' cost to an extent to above average and marginal cost. Market with market powers experiences a high profit since an individual firm can influence the product's quantity and price within the market.

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