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Question
Macroeconomics
Posted 3 months ago

Which of the following best defines market power?
Choose 1 answer:
(A) the ability to make a profit in the short run
(B) a firm's ability to control the quantity they produce
(C) the ability to advertise
(D) the ability to control the price of a good
(E) a firm's decision to enter or exit a market
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Answer from Sia
Posted 3 months ago
Solution
a
Market Power Definition: Market power refers to a firm's ability to influence the price of a good or service in the market
b
Correct Option Identification: Among the given options, the ability to control the price of a good is the most accurate definition of market power
Answer
Option D: the ability to control the price of a good
Key Concept
Market Power
Explanation
Market power is best defined as a firm's ability to control the price of a good, which reflects its influence over the market conditions.

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