ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Key Takeaways. Market power refers to a company’s relative ability to manipulate the price of an item in the marketplace by manipulating the level of supply, demand or both. In markets with perfect or near-perfect competition, producers have little pricing power and so must be price-takers.

Detailed explanation-2: -Market power is the ability of a company to control prices and output. Markets dominated by a few large firms tend to have higher prices and lower output than markets with many sellers.

Detailed explanation-3: -A monopoly exists when one supplier provides a particular good or service to many consumers. In a monopolistic market, the monopoly, or the controlling company, has full control of the market, so it sets the price and supply of a good or service.

Detailed explanation-4: -Market power refers to the ability of a firm (or group of firms) to raise and maintain price above the level that would prevail under competition is referred to as market or monopoly power.