The two primary factors determining monopoly market power are the firm's
A) revenues and size of its customer base
B) demand curve and its cost structure
C) variable cost curve and its fixed cost structure
D) demand curve and level of wealth within its market

Question

Quizplus · Accepted Answer

The two primary factors determining a firm's monopoly market power are its demand curve and its cost structure. The demand curve affects the firm's ability to set prices above marginal cost, while the cost structure influences its profitability at different levels of output.

The Two Primary Factors Determining Monopoly Market Power Are the Firm's