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The degree of monopoly power is to be measured in terms of the firm’s
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- normal profit
- supernormal profit
- both normal and supernormal profit
- selling price
- normal profit
Correct Option: B
Monopoly power implies the amount of discretion which a monopolist possesses to fix up the prices of his products and degree of control over his output decisions. According to J.S. Bains, the degree of monopoly power can be measured by the monopoly firm's super-normal profit.
