Which of the Following Statements About Monopoly Power Is Correct

question 123

Multiple Choice

Which of the following statements about monopoly power is correct?

• A) Monopoly power is the power attained solely by dual firm monopolists.
• B) Monopoly power is the power to raise prices above average cost without facing new entry of firms.
• C) Monopoly power is only generated by governments.
• D) Firms attaining monopoly power always set the price at the marginal cost.