In economics, market power is the a

In economics, market power is the ability of a firm to alter the market price of a good or service. A firm with market power can raise prices without losing all customers to competitors.

When one buyer or seller in a market has the ability to exert significant influence over the quantity of goods and services traded or the price at which they are sold. Market power does not exist when there is perfect competition, but it does when there is a monopoly, monopsony or oligopoly.


A firm with market power can:

A. Beats its competitors

B. Create perfect competition

C. Buy cheap materials

D. Dictate prices