14.1k views
3 votes
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.

User Chau Loi
by
9.0k points

1 Answer

0 votes

Answer:

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

Step-by-step 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.

User Futurecat
by
7.4k points
Welcome to QAmmunity.org, where you can ask questions and receive answers from other members of our community.