As other firms enter a monopoly's market, the monopoly's market ...

[dbose]

As other firms enter a monopoly's market, the monopoly's market power
 
  A) is unaffected.
  B) declines.
  C) increases.
  D) increases according to the Lerner Index but decreases according to the price/marginal cost ratio.

Question 2

A small business owner earns 60,000 in revenue annually. The explicit annual costs equal 10,000. The owner could work for someone else and earn 25,000 annually. The owner's accounting profit is ________ and owner's economic profit is ________.
 
  A) 20,000; 5,000
  B) 50,000; 25,000
  C) 25,000; -5,000
  D) 45,000; -5,000

[morganmarie791]

Answer to Question 1

B

Answer to Question 2

B