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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.

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  1. 6 September, 20:53
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    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.
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