1. The difference between monopoly and monopoly power is that:
A. monopoly produces a product for which there are no close substitutes, and in monopoly power, firms produce goods which are perfect substitutes.
B. monopoly has one firm with substantial control over price, while monopoly power implies that a firm has some control over price.
C. in a monopoly, the market has easy entry, whereas in monopoly power, entry is difficult.
D. monopoly has one firm serving the market, while in monopoly power, thousands of firms operate.
2. A firm's marginal cost curve above the minimum point on the average variable cost curve coincides with its:
A) short-run total cost curve.
B) long-run average cost curve.
C) short-run supply curve.
D) demand curve.
These multiple choice questions belong to Economics and the 1st question is about the difference between monopoly and monopoly power. The 2nd question is about marginal cost curve above the average variable cost curve.
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