28. A price discriminating monopoly is a. illegal c. trying to maximize its profit b. dis-serving the society d. not ethical e. none of the above. 29. Homogeneous products are a. pasteurized c. perceived by the consumer to be identical b. bland d. made by one manufacturer e. made by hand

30. Which of the following is true of the monopoly? a. there are no barriers to entry. b. the firm is a price taker c. there are no close substitutes for the product being produced d. there are many firms in the industry e. the firm faces a horizontal demand curve.

31. The demand curve faced by a firm with a patent on a marketable product a. is horizontal c. slopes upward b. is vertical d. slopes downward e. is nonexistent

32. A monopolist earning economic profit in the short run determines that at its present level of output, marginal revenue is $23 and marginal cost is $30. Which of the following should the firm do to increase profit? a. raise price and lower the output c. raise price and raise output b. lower price and lower output d. lower price and raise output e. lower output but leave price unchanged

33. Relative to a perfectly competitive market, as long as the monopolist does not benefit from substantial economies of scale, a. price and quantity are higher under monopoly b. price and quantity are lower under monopoly c. quantity is higher and price is lower under monopoly d. quantity is lower and price is higher under monopoly e. there are no differences in price and quantity.