I have a total of 5 questions I'm unsure of. A natural monopoly such as a local power company a. is a monopoly in the production of raw materials b....

I have a total of 5 questions I'm unsure of...

1. A natural monopoly such as a local power company

a. is a monopoly in the production of raw materials

b. is one result of a patent

c. occurs when one firm can supply the entire market more cheaply than can a number of firms

d. necessarily involves inefficient pricing

2. If a monopolist is able to price discriminate via market separation, then it will maximize its profits by producing where ________ in each market, charging the group with the __________ elastic demand a higher price.

a. P=MC, less

b. MR=MC, more

c. MR=AC, less

d. MR=MC, less

3. In regulating a natural monopoly, the problem with a marginal-cost-pricing policy is that:

a. the regulated firm will earn negative profits

b. the regulated firm will earn zero profits

c. the regulated firm will still earn positive profits

d. none of the above

4. A price-discriminating monopolist should divide sales among markets so that

a. price is the same in each market

b. output is the same in each market

c. average cost is less than revenue in each market

d. marginal revenue is the same in all markets

5. A monopolist with multiple plants should allocate total production among plants so that

a. average cost is the same in all plants

b. marginal revenue is the same in all plants

c. marginal cost is the same in all plants

d. output is the same in each plant