Alcoa has control over bauxite a key resource in aluminum production, giving it a

monopoly. How could the government increase quantity of aluminum sold by Alcoa?

(1pt)

3.

Mobile phone companies have power because of patents. Someone suggests abolishing

intellectual property rights. (2pt)

a.

What's the problem with this?

b.

What might be a better solution?

4.

A monopolist will charge a price (1pt):

a.

Greater than marginal cost

b.

Equal to marginal cost

c.

Less than marginal cost

d.

That maximizes social surplus

e.

None of the above