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What is a potential source of market power? a

Marketing

What is a potential source of market power?

a. Legal sources such as patents and licenses

b. A low-income market

c. Government s corruption

d. High interest rates

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The correct answer is (a).

Through the government actions or involvement in the market, it results in emerging of market power. For instance, the government introduces legal barriers such as copyrights, licenses and patents, making it challenging for new firms to join the market. More so, some companies receive special rights from the government hence making them have market power legally.

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