Asked by
Rishabh Chaudhary
on Nov 05, 2024
Verified
A chocolate manufacturer raises the price of its chocolate by 12%, and the quantity demanded of its chocolate falls by only 5%. This firm has
A) no monopoly power in the output market.
B) some market power.
C) some output power.
D) not been able to prevent its competitors from competing with it on price.
Market Power
The ability of a firm or group of firms to manipulate the price or quantity of a good or service in the market, often through controlling supply or market dominance.
Monopoly Power
The ability of a single seller to control market prices and exclude competitors within a particular market.
- Become aware of the significance of market hegemony and sole provider status in impacting economic effectiveness and the establishment of price points.
Verified Answer
GP
Learning Objectives
- Become aware of the significance of market hegemony and sole provider status in impacting economic effectiveness and the establishment of price points.