1. Typically the model of Monopoly predicts that all customers are charged the same price and that the monopolist selects the quantity and price combination from the market demand curve that maximizes profit. However, there are times where a monopolist may at least attempt to charge different prices for the exact same product depending on each consumer's willingness and ability to pay. In this case the monopolist might offer the product at a lower price to those who would otherwise not buy it, thus increasing quantity consumed in the market and reducing some of what is called the dead weight loss of monopoly. However, much of what is called "consumer surplus" is transferred to the monopolist as profit. What are some of the reasons that a market could be a monopoly? What is giving the monopolist their exclusive position in the market? What determines whether or not a monopolist is able to charge different prices for the same product? Discuss the conditions necessary for successful price discrimination and offer a few examples where you think price discrimination is being practiced. 2. Discuss some products and markets that are good examples of Monopolistic Competition. Next, Can you think of examples of markets where there are many choices among products, yet we all tend to have some brand loyalty for our favorite products? In other words, we do not perceive all firms' products as perfect substitutes for each other. Discuss at least two examples of products where you think the market is structured as monopolistic competition. Why did you select these examples? If you can include some of the advertising you have seen for this product that helps to distinguish it from its competition. Please cite the source of any information found