Answer each of the following questions in NO MORE than 3 lines.

1. Why do monopolistic firms price their product within a price range where the demand is relatively elastic?
2. Why is the marginal revenue less than the selling price for non-discriminating monopolists?
3. What exactly does the Lerner index measure, and how is it related to the own-price elasticity of the demand facing a monopolist?
4. Compare first, second and third-degree price discrimination in terms of (1) potential firm profitability and (2) allocative efficiency.
5. Why is market segmentation easier to implement in the market for a tourism service, compared to the market for fresh fish in Oman?
6. Name and explain two fundamental assumptions underlying the Cournot model.