Market power refers to the ability of a firm (or group of firms) to influence the market price or quantity demanded. It allows a firm to act independently and affect its competitors' behavior.
Related terms
Monopoly: A market structure where there is only one seller in an industry, giving them complete market power.
Oligopoly: A market structure characterized by few large firms dominating the industry, leading to limited competition and high interdependence.
Collusion: When competing firms cooperate with each other instead of competing in order to maximize their joint profits.