1. If a monopolist must charge the same price to all customers, then:

a. MR will be equal to the price.

b. MR will be less than the price.

c. MR will be greater than the price.

2. Suppose that an industry has a pre-merger Herfindahl–Hirschman Index (HHI) of 2,500 and two firms in that industry are trying to merge. Based on the given information, which statement is TRUE?

a. The merger is likely to be disapproved.

b. The merger is likely to be approved if it raises the HHI by less than 200 points.

c. The merger is likely to be challenged.