PLEASE SELECT THE CORRECT ANSWER ONLY.

EXPLANATION IS NOT REQUIRED.

Question 1

What is the reason for sellers in a monopoly market to have a great deal of power over price?

a) Their products have no close substitutes.

b) There are few barriers to entry or exit.

c) Their buyers have perfect information about the product.

d) There are many sellers in the market.

Question 2

Based on this graph, the firm's break-even point is at a price of __________.

Number of Snow Blowers 2000 1500 1000 500 _ Produotlon Possibilities E Curve 0 300 600 900 1200 Number of Swimming Pools Price per Y Apple $2.00 Supply $1.75 $1.50 $1.25 $1.00 At any price $0.75 below $1.00 per apple, the $0.50 market is out- , ofequilibrium. $0.25 De and O 1 2 3 4 5 6 7 Quantity of Apples (in thousands of bushels) \fX