a. Coca-Cola cuts its price below that of Pepsi-Cola to increase profit.

b. A single firm, protected by a barrier to entry, produces a personal service that has no close substitutes.

c. A barrier to entry exists, but the good has some close substitutes.

d. A museum offers discounts to students and seniors.

e. A firm can sell any quantity it chooses at the going price.

f. A firm experiences economies of scale even when it produces the quantity that meets the entire market demand.

1. Which of the six cases are monopolies or might give rise to monopoly?

2. Which are natural monopolies and which are legal monopolies? Can any of them price discriminate? If so, why?