Most firms have
A)no monopoly pricing power.
B)some monopoly pricing power.
C)absolute monopoly pricing power.
D)the ability to earn monopoly profits.

Question

Quizplus · Accepted Answer

Most firms have some degree of market power which enables them to set prices higher than their marginal costs, or at least to have some influence over the price in their market. This is known as monopoly pricing power. However, only a few firms may have enough market power to achieve absolute or near-monopoly pricing power, which allows them to set prices significantly above their marginal costs and earn substantial monopoly profits.

Most Firms Have