Economics Supply And Demand Questions
Market power refers to the ability of a firm or a group of firms to influence the market price or quantity of a good or service. It is the extent to which a firm can control the market conditions and affect the behavior of other market participants. Market power can arise from various factors such as having a large market share, having exclusive access to key resources or technology, or through legal barriers that restrict competition. Firms with market power have the ability to set prices higher than the competitive level, limit output, or engage in other anti-competitive practices. This can result in reduced consumer welfare, higher prices, and limited choices for consumers.