What is MARKET POWER?

Influencing an item’s price with control exercised over its demand, supply, or both as a firm’s measure of this type of strength. Every firm in a market has zero market power under the economic concept of perfect competition, forcing each firm to accept the current market price with no influence, no control to exercise. In reality, firms with highly differentiated products having near monopoly power. In every market each firm has a varying level of market power.

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