When a company possesses some level of market power, how is the product's selling price affected?

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It has no effect on the quantity of the product demanded.The firm can actively set the price as part of its strategy.The price will always exceed the firm's average cost.The price is set based on competitors' decisions.

Explanation

If a firm holds market power, it can influence the price of its product and therefore treats price as a strategic choice. This means the price becomes a decision variable under the firm's control, unlike in perfectly competitive markets where price is given.