Part I: Short Questions Question 1 (20 points) Evaluate the validity of each of the following statements - if a statement is not valid, provide counter examples and explain how to improve its validity. If a statement is valid, prove the validity either analytically or with graphical/written argument. Be sure to clearly accompany your explanation using graphs and equations where appropriate. Points are awarded for the quality / completeness of your explanation: a) A maximum profit solution to the short-run, uniform pricing monopoly's output choice problem only exists if the marginal cost of the last unit produced at the optimum is an increasing function of output. b) The Lerner Index for an unsubsidized, uniform pricing monopolist that is maximizing profits must be between zero and one. c) The most important requirement to engage in the practice of price discrimination is the ability to segment markets. d) Since the optimal two-part tariff involves pricing each unit at marginal cost and charging an entry fee equal to the consumer's remaining surplus, it generates the same profit outcome for the producer as if the producer had perfect price discrimination