2908. The degree of monopoly power is measured in terms of difference between

Marginal cost and the price
Marginal cost and average revenue
Marginal cost and average cost
Marginal revenue and average cost
✅ The correct answer is A.
The degree of monopoly power is measured in terms of difference between Marginal cost and the price. In a perfectly competitive market, price equals marginal cost and firms earn an economic profit of zero. In a monopoly, the price is set above marginal cost and the firm earns a positive economic profit.

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