Question 1) You own a lemonade stand in a competitive market. Which of the following events would most likely increase your market power?

1) The average total cost curve for firms in the industry is horizontal.

2) you own exclusive rights to harvest lemons from all domestic citrus orchards.

3) a booming economy increases the demand for lemonade and attracts entry into the market.

4) the government abolishes the system of patents and copyrights.

Question 2) Littleburg has 6 restaurants, which collectively serve 300 bowls of noodles per day. Then, 5 of the restaurants accidentally burn down, leaving only Nelly's Noodle Hut intact. Now, Nelly's will serve _______ 300 bowls of noodles per day, and the price will be ______.

1) more than, higher

2) more than, lower

3) exactly, the same as before

4) less than, higher

5) less than, lower