1.Because they result in higher prices than perfect competition, policymakers often blame monopolies for causing inflation, where inflation is a persistent increase in the general price level. Is it appropriate to assign such blame to monopolies? Explain.

2.Suppose that we, as consumers, have the option of having an AIDS vaccine produced by a monopoly or of not having the vaccine produced at all. Under which option would we be better off? Why?

3."Because a monopoly is the only source of supply, consumers are entirely at its mercy. There is no limit to the price the monopoly can charge." Evaluate this statement.