1. The monopolist bases its supply decision on marginal revenue rather than demand directly'. Comment on this statement.
2. There are two main criticisms of the monopoly. One that monopolies produce too little output and secondly there is a redistribution of wealth from consumers to "fat cat" firm owners. Argue why the second criticism may not be true.
3. Explain in detail what factors may prevent the monopoly from being able to successfully price discriminate?
4. Discuss in detail (with examples where applicable) the nonlinear pricing strategy monopolies use to attain higher profits.
5. As monopolies are allocatively inefficient list three strategies regulators use to reduce this inefficiency.