What is monopoly power?

A. When an organization has absolute power in its chosen marketplace

B. When an organization has power over its immediate rivals in its chosen marketplace

C. When an organization has limited power in its chosen marketplace

D. When an organization buys out another organization and assumes power of its share of the marketplace

Answer: Option A

Solution(By Examveda Team)

When an organization has absolute power in its chosen marketplace is monopoly power. Monopoly power (also called market power) refers to a firm's ability to charge a price higher than its marginal cost. Monopoly power typically exists where the there is low elasticity of demand and significant barriers to entry.