Market power exists when a firm can ______?
مارکیٹ پاور اس وقت موجود ہوتی ہے جب فرم کیا کر سکتی ہو؟
- Reduce its production to zero
- Set price equal to marginal cost
- Set price above marginal cost
- None of these
Explanation
- Market power exists when a firm can set price above marginal cost.
- It means the firm has the ability to influence the market price.
- Under perfect competition, firms generally cannot set price above marginal cost.
- Market power is commonly associated with monopoly and imperfect competition.
Last verified on 13-08-2026
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