Question

What is monopoly power? How is it related to the elasticity of demand facing a " firm? Explain.

Answer 1

Answer:

Monopoly means single firm control ling the market in absencse of competitors.

Explanation:

As the market is fully captured by one makes the market fully dependent on it.

The price elasticity of the demand curve facing a monopoly firm determines if the marginal revenue received by the monopoly is positive (elastic demand) or negative (inelastic demand). ... If the demand is elastic, then marginal revenue is positive. If the demand is inelastic, then marginal revenue is negative.