1. Consider the statement: "Regardless of whether the short run or the long run is being considered, a firm should continue to operate as long as price is greater than average variable cost". Explain whether you agree or disagree and why.

2. In spite of the finding that monopolists charge higher prices and produce less output than competitive firms, some economics argue that monopolies benefit society (they raise economic welfare). What are some of the reasons that these economists give for taking this position?