Market power is
A. The ability to alter the market price of a good or service.
B. A characteristic of all market structures.
C. Enjoyed by all firms at high levels of output.
D. Most common for competitive firms.
Answer: A
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Which of the following is NOT a method for promoting global economic growth?
A) reliance on private markets to direct capital goods toward their best use B) Count on the world's governments to develop policies that promote economic growth in developing nations. C) Encourage population growth so that developing nations' labor supply increases. D) market based approach
A market failure is a situation in which
A) resources are being efficiently allocated, but some companies are forced to shut down. B) the market equilibrium leads to either too many or too few resources going towards producing the good or service. C) the government must take actions to correct the failures of the market in a particular industry. D) there is no free entry or exit into an industry.