Market power: A. Is the same for all market structures. B. Means that a firm is a price taker, not a price setter. C. Is the ability to alter the market price of a good or service. D. Only exists for a monopoly.

Question

Business

Gillian Washington

15 March, 20:46

Market power: A. Is the same for all market structures. B. Means that a firm is a price taker, not a price setter. C. Is the ability to alter the market price of a good or service. D. Only exists for a monopoly.

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Answers (1)

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Lorelei Lynn · Answer 1

C) Is the ability to alter the market price of a good or service.

Explanation:

Market power can be held by both consumers and suppliers, it just depends on the size of each of them. For example, a monopoly has a very large market power because it is the only supplier of a certain product or service. On the other hand, a large manufacturer or retailer has a large market power over its vendors. E. g. Walmart is known for demanding the lowest possible prices form its vendors.