9. Monopolies are considered inefficient when compared to perfect competition because:

(A) demand is inelastic. (B) marginal benefit exceeds marginal cost.

(C) monopolies make profits. (D) marginal revenue exceeds marginal cost.

10. Which of the following acts as a barrier for natural monopolist?

(A) a government license. (B) ownership of a key resource.

(C) increasing returns to scale. (D) possession of a patent.

11. Perfect price discrimination is unlikely to exist in real life because:

(A) monopolists are willing to cut their customers some slack.

(B) price discrimination is just a theoretical concept.

(C) information asymmetries are present.

(D) economics is not a perfect science.

12. In the case of perfect price discrimination marginal revenue is usually:

(A) larger than the average revenue. (B) equal to the marginal cost.

(C) equal to the price. (D) decreasing.

13. The MR function of a perfect price-discriminating monopolist:

(A) coincides with the market demand curve. (B) is undefined.

(C) is independent of output. (D) is below average revenue.