market power

Popular Terms
Extent to which a firm can influence the price of an item by exercising control over its demand, supply, or both. Under the economic concept of perfect competition, all firms in a market are assumed to have zero market power. Thus, each firm has to accept the current market price without being able to exercise any control over it. In reality, however, in every market some firms do have varying levels of market power; firms with highly differentiated products having almost monopoly power.

Use 'market power' in a Sentence

I knew the firm would be okay cause they had a lot of market power and could influence everything in their scope of vision.
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You should try to know the market power of your product and take full advantage of what it entails for you.
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Sometimes large corporations have too much market power, and they are able to bankrupt small businesses by lowering their prices to unbelievable and unmatchable levels.
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