Question

A firm might try to increase its market power in order toA. Charge higher prices for the goods in produces.

b. Lower the price level throughout the market.
c. Encourage more firms to enter the market.
d. Boost competition through deregulation

Answer 1

A. Charge higher prices for the goods in produces
once a company dominates the market. It can set higher prices for the good and services it is dealing with.