ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -The ability of a firm (or group of firms) to raise and maintain a price above the level that would prevail under competition is referred to as market power or monopoly power.

Detailed explanation-2: -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.

Detailed explanation-3: -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-4: -Monopoly power is the power that a single company or small group of companies (called a monopolist) have over setting the prices in a single market. A monopoly occurs when a single company is the only provider of a product or service in a given market sector.

Detailed explanation-5: -Market power (MP) is the potential of a firm(s) to influence the market price of a good or service by controlling its demand and/or supply. It allows the firm to sets the price of its products as desired without the fear of losing sales. Selling at higher prices enables the firm with MP to rake in substantial profits.