Question 1 The following table applies to a monopoly seller Output/Sales Price Total Revenue Average Marginal Revenue Revenue $6.00 NOT APPLICABLE $5.50 $5.50 $5.00 $0.50 $4.50 $0.50 $4.00 $3.50 $3.00 $2.50 $2.00 $1.50 $1.00 $0.50 1) Fill in the blank spaces. 2) What elasticity of demand exists between prices $6.00 and $3.00? Give reasons for your answer. 3) What elasticity of demand exists between prices $3 and $0.50? Give reasons for your answer. Question 2 1) Define natural monopoly. 2) What is meant by barriers to entry? 3) What role do barriers to entry play in determining market structure? Question 3 1) Use a well-drawn diagram to show the long run equilibrium for a firm in monopolistic competition. 2) What does your diagram in part (1) suggest about the efficiency of the monopolistic competitor? Give reasons for your answer? 3) What do economists see are the economic advantages in monopolistic competition? Give reasons for your