Which of the following firms are in a monopolistically ...

[s.tung]

Which of the following firms are in a monopolistically competitive market?
 
  A) the many retail firms such as JCPenney, Sears, The Gap, and so on
  B) the sole local providers of electricity, such as Kansas Power and Light, or Pacific Gas and Electric
  C) the many farmers that grow wheat
  D) None of the above are in a monopolistically competitive market.

Question 2

If the marginal private cost of producing one kilowatt of power in California equals five cents and the marginal social cost of each kilowatt equals nine cents, then the marginal external cost equals ________ per kilowatt.
 
  A) five cents
  B) nine cents
  C) four cents
  D) fourteen cents

[reversalruiz]

Answer to Question 1

A

Answer to Question 2

C