Market power occurs when a firm: maximizes profit at the output level where P =

Question

Market power occurs when a firm: maximizes profit at the output level where P = MC. can sell additional units of output without lowering the price of its product. can influence the price of its product. must sell additional units of output at a constant marginal cost. Market power occurs when a firm: maximizes profit at the output level where P = MC. can sell additional units of output without lowering the price of its product. can influence the price of its product. must sell additional units of output at a constant marginal cost.

Explanation / Answer

Answer

can influence the price of its product

the market power is to influence price or increase and decrease price and can sale output,

ex. if perfectly competitive firm increase price they cannot sell anything to the firm should have the power to increase or decrease price and sale some of the units.

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