Market power a

Market power is the capability to increase the price without losing sales. Firms that have the determining market price set the product's price or the entire industry above the marginal cost. The market power is acquired if a firm can manufacture a product with no perfect substitutes hence being dominant in the field. However, in the real corporate world where competition exists, market power is hard to develop since firms can set prices that they choose to, and firms involved play a role in determining the market price as they serve a small market share. Furthermore, in a competitive market, a firm can't increase the profits by adjusting the price.