Market power refers to the ability of a company or entity to influence the price of a product or service in the marketplace. This influence can arise from factors such as a lack of competition, unique products, or control over essential resources. Companies with significant market power can set prices higher than they would be able to in a competitive market, potentially leading to higher profits. When a firm has market power, it can also affect supply and demand dynamics. For example, if a company like Apple has a strong market position, it can introduce new products at premium prices, impacting consumer choices and competitors. This power can lead to concerns about fairness and competition in the market.