Answer question 5

c) [4] Would the monopolist prefer to use an alternative pricing strategy? Explain. 5. [8] Evaluate the following statement: "Compared to the competitive outcome, monopoly will always result in some amount of Pareto inefficiency." Present figures to support your arguments. (Hint: Label your figures very carefully.) 6. [26] Cinema Barn is a rustic looking movie house in a medium-sized college town. To operate, the