Market power refers to the a. importance of a certain market in relation to the overall economy. b. ability of a person or small group to successfully market new products. c. power of the government to regulate a market. d. power of a single person or small group to influence market prices.

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22 October, 12:15

Market power refers to the a. importance of a certain market in relation to the overall economy. b. ability of a person or small group to successfully market new products. c. power of the government to regulate a market. d. power of a single person or small group to influence market prices.

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Answers (1)

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Trey Ferguson · Answer 1

The answer is d.

Explanation:

Market power is defined as the power possessed by a single individual or a company or a group of companies to have effect on the prevailing market power. Such a group has the power, which if exercised, can affect the prices and deter competition. These individuals or companies have this power over others because of the position they hold with respect to others on the basis of either their market share, market size, technical advantage or so on. Thus, option d which says the power of a single person or small group to influence market prices is the right answer.