The degree of monopoly power is measured in terms of difference betwee

1.	The degree of monopoly power is measured in terms of difference between
Answer» Marginal COST and the price The degree of MONOPOLY power is measured in terms of difference between Marginal cost and the price. In a perfectly competitive MARKET, price equals marginal cost and firms earn an ECONOMIC profit of zero. In a monopoly, the price is set above marginal cost and the firm EARNS a positive economic profit.

The degree of monopoly power is measured in terms of difference between

Answer»

Marginal COST and the price

The degree of MONOPOLY power is measured in terms of difference between Marginal cost and the price. In a perfectly competitive MARKET, price equals marginal cost and firms earn an ECONOMIC profit of zero. In a monopoly, the price is set above marginal cost and the firm EARNS a positive economic profit.

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The degree of monopoly power is measured in terms of difference between

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