Market power refers to the
A)side effects that may occur in a market.
B)government regulations imposed on the sellers in a market.
C)ability of market participants to influence price.
D)forces of supply and demand in determining equilibrium price.

Question

Quizplus · Accepted Answer

Market power refers to the ability of market participants, either buyers or sellers, to influence the market price. This is usually associated with a lack of competition in the market, which allows firms to set prices higher than they would in a competitive market. Government regulations (B) and the forces of supply and demand (D) are not necessarily related to market power, and side effects (A) are not a definition of market power.

Market Power Refers to the