Question

A firm has market power if it can a. maximize profits. b. minimize costs. c. influence the market price of the good it sells. d. hire as many workers as it needs at the prevailing wage rate.

Answer 1

Answer:

Option C: Influence the market price of the good as it sells

Explanation:

Market Power is simply when a firm is able to raise price above the equilibrium level by not and without losing all of its customers. It depends on largely on the closeness of substiutes.

A firm has market power if it can Influence the market price of the good as it sells to its customer and can regulate it when necessary.