1. A monopoly is inefficient solely because the monopolist gets a profit at the expense of consumers. ____________ (True/False)
2. To show the deadweight loss from monopoly, we compare the monopoly outcome to what would happen under_________ .
3. The deadweight loss from monopoly is shown graphically by the area between the _________curve and the_________ curve between the _________quantity and the _________quantity.
4. The average cost for providing off-street parking is $30 per space per day, and as a monopolist you could charge $35 per space per day for 200 spaces. The maximum amount that you are willing to pay for a monopoly is $ _________.
5. The offer from casino developers to the citizens of Creswell, Oregon, is an example of _________.
6. Ending a Casino Monopoly. Consider a state that initially has a single casino for gambling. Suppose the state allows a second casino to enter the market. How would you expect the entry of the second casino to affect (a) the variety of games offered in the casinos and (b) the payout (winnings) per dollar spent?
7. Payoff for Casino Approval. Recall the Application on the casino developer s offer to pay citizens to approve a casino. Why aren’t similar deals proposed for new clothing stores, music stores, or auto repair shops?