1.Which is NOT required for a firm to be a monopoly?

a)High Barriers to entry for new firms

b)No close substitutes

c)P = MC to maximize profits

2.A monopoly firm lowers the price of the good it is selling, what happens?

a)Total revenue goes up by selling another unit.

b)Total revenue goes up by lower the price of the the units sold.

c)Marginal revenue stays the same

d)Total revenue continues to increase as the firm lowers the price and sells more.

3.A monopoly firm results in a deadweight loss to society compared to the result if it was a competitive market.

a)true

b)false