1. Define a Monopoly. 2. Why do Monopolies arise? - Explain: - Give an example of each of the 3 reasons. 3. Why is the demand curve for a competitive firm horizontal (perfectly elastic)? 4. Why is the demand curve for a monopoly downward sloping? 5. When analyzing the revenue of a monopoly firm: - Why can't they increase price as high as they want? 6. How does a Monopoly firm maximize profit? Explain in detail. 7. Explain how a monopolists chooses the quantity of output to produce and the price to charge. 8. Explain the welfare cost to society because of monopolies. 9. What is price discrimination? Give some examples in which firms price discriminate. 10. What are the public policies toward monopolies? What policy stance would you take