Market power refers to the: a. side effects that may occur in a market. b. government regulations imposed on the sellers in a market. c. ability of market participants to influence price. d. forces of supply and demand in determining equilibrium price.

c. ability of market participants to influence price

Explanation:

Market power is the ability of market participants to influence prices for their goods or services. The market participants that can influence prices for their commodities are known as price makers.

Price makers are usually monopolies and monpolistic competition firms.

The set their prices to maximise profit.

These firms usually have a downward sloping demand curves.

Firms that cannot influence the price of their products are known as price takers. Prices are set by the forces of demand and supply. Firms that are usually price takers are perfect competition.

Externalities are side effects that may occur in a market. 

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