Q57
According to M. Kalecki, the true measure of the degree of monopoly power is the
A.
Ratio between price and marginal cost
AnswerB.
Extent of monopolistic profit enjoyed by the monopolist
C.
Cross-elasticity of demand for the product of the monopolist
D.
Price charged by the monopolist minus marginal cost of production
Answer: Option A
Solution
Answer: Option A
Solution:
According to M. Kalecki, the true measure of the degree of monopoly power is the Ratio between price and marginal cost. Monopoly is the form of market organisation in which there is a single fir m selling a commodity for which there are no close substitutes.