20 20 1. After learning all of this information about monopolies, do you think a monopoly can be good for society? Please try to use the theories or model, as well as an example to support your statement. 2. A friend owns a hotel that gets a lot of seasonal business. The average total cost per day of running the hotel is $75. She tells you that during the off-season (when there are a lot of empty rooms), she had someone offer her $70 for a room. She indignantly tells you she turned the offer down since it was less than her average cost. Was that a good decision? 3. Read the "Economics in Action" case: Pay-for-Delay Runs Out of Time in Chapter 12 and answer the following questions: Why are the prices of generic drugs so much cheaper after they come off a patent? Try to use the characteristics, theories, or models you learned in this chapter about the perfect competition market to explain your answer (hint: don't just repeat the information in the case but use the materials you learn in lecture to support your answer)