18. Suppose that a monopoly firm is required to pay a new annual license fee just for the privilege of doing business in its fair city; the fee is somewhat less than the economic profit the firm is now earning. In response to the increase in fees, the firm will: A) raise its price, but by less than the amount of the license fee. B) raise its price by the amount of the license fee. C) raise its price by somewhat more than the license fee. D) not change its price. 19. In monopoly: A) because P > MC, a basic condition for efficiency is violated. B) consumers are confronted with a price that is lower than marginal cost. C) consumers will consume more of the good than is economically efficient. D) all of the above are true.20. The pricing in monopoly prevents some mutually beneficial trades from taking place. The value of these unrealized mutually beneficial trades is called: A) sunk costs. B) opportunity costs. C) a deadweight loss. D) inequities. 21. Monopoly power can be maintained because of A) government protection. B) barriers to entry. C) economies of scale over the range of market demand. D) all of the above. 22. A monopoly A) always makes profits. B) can set whatever price it wants for the product it makes. C) produces less and charges a higher price than would a perfectly competitive firm. D) is permanent