Exercise 1 Indicate if the following characteristics exist in a condition of pure monopoly by writing a YES in the blank for those that do and a NO for those that do not. 1. Freedom of entry into the market 2. Consumers enjoy variety of products. 3. The seller is a price maker. 4. The seller can set price as high as he can without affecting demand. 5. The seller's demand curve is downward sloping. 6. The seller's marginal revenue is lower than price. 7. Perfect knowledge of market conditions 8. The seller advertises his product. 9. Profit is maximized where MR = MC. 10. Extraordinary profits are enjoyed when price exceeds the average cost. Exercise 2 Give the points of differentiation between a pure monopoly and a technical monopoly. 1. 2. Co