**Question:**Market power is what allows firms to make profit and it comes from all of the following except ___________.- Patents- High consumer demand- Government licenses- Product innovation**Explanation:**This question examines the sources of market power, a concept in economics that describes the ability of a firm to raise prices above the competitive level. The options provided include various sources commonly associated with market power.- **Patents:** Legal rights granted to inventors, providing them exclusivity to their innovations, often resulting in market power.- **High consumer demand:** Refers to the desire for goods or services that may not directly create market power but could enhance it in conjunction with other factors.- **Government licenses:** Authorizations that allow firms to operate in specific markets, potentially limiting competition and increasing market power.- **Product innovation:** The development of new or improved products, which can establish or enhance market power by differentiating a firm's offerings from competitors.The task is to identify which option does not directly contribute to market power.

The term 'power' describes the ability to control a scenario and dominating others. Similarly,…

Answered: Market power is what allows firms to…

Market power is what allows firms to make profit and it comes from all of the following except O Patents O High consumer demand O Government licenses O Product innovation

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

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