1. Which of the following is a difference between a perfectly competitive market and a monopoly?
A. There are huge barriers to entry in a perfectly competitive market, while there are no barriers to entry in a monopoly.
B. The market demand curve faced by a perfectly competitive firm is horizontal, while the market demand curve in a monopoly is downward-sloping.
C. The sellers in a perfectly competitive market are price-makers, while a seller in a monopoly market is a price-taker.
D. The equilibrium price in a perfectly competitive market exceeds marginal revenue, while the equilibrium price in a monopoly equals marginal revenue.
2. Which of the following firms is likely to have the highest market power?
A. An oligopoly with homogeneous products
B. A monopoly
C. A monopolistic competitor
D. A perfectly competitive firm