Ask Question
6 September, 20:47

A firm has market power if it can Select one: a. maximize profits. b. minimize costs. c. influence the market price of the good it sells. d. hire as many workers as it needs at the prevailing wage rate.

+3
Answers (1)
  1. 6 September, 20:53
    0
    The correct answer is C. Influence the market price of the good as it sells ...

    Explanation:

    A company is said to have market power when it can increase and maintain the price of its products or services above the level that would exist in a perfectly competitive market.

    Due to the price increase, demand may decrease. Therefore, market power can lead to a reduction in the quantity produced (and sold). Which entails a reduction in the welfare of society.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “A firm has market power if it can Select one: a. maximize profits. b. minimize costs. c. influence the market price of the good it sells. ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers