Comment on the following statement: "A firm with market power is able to charge any price it likes."
What will be an ideal response?
The statement is false. A firm with market power is constrained by the demand for its product. The firm must charge a price that buyers are willing to pay.
Economics
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A large open economy
A) dominates world trade in one or more products. B) is physically larger than all small open economies. C) has a larger population than all small open economies. D) lends or borrows enough in the international capital market to influence the world real interest rate.
Economics
Which of the following addresses agency costs
a. advertising for employee positions in as many outlets as possible b. hiring only from job fairs c. instituting longer work days d. replacing closed offices with cubical office spaces
Economics