P12.1 Monopoly Concepts. Indicate whether each of the following statements is true or false and explain why.

A.TheJusticeDepartmentgenerallyconcernsitselfwithsignificantorflagrantoffensesunderthe Sherman Act, as well as with mergers for monopoly covered by Section 7 of the Clayton Act.

B. When a single seller is confronted in a market by many small buyers, monopsony power enables the buyers to obtain lower prices than those that would prevail in a competitive market.

C. A natural monopoly results when the profit-maximizing output level occurs at a point where long-run average costs are declining.

D. Downward-sloping industry demand curves characterize both perfectly competitive markets and monopoly markets.

E. A decrease in the price elasticity of demand would follow an increase in monopoly power.

Please do not copy answer from other sources. Thank you.