True or False

1) A perfectly competitive firm is a price maker and a monopolist is a price taker.

2) A monopoly is a market structure characterised by a single supplier of a good or service for which there are many substitutes.

3) Barriers to entry include patents, copyrights, control over essential inputs, and economies of scale.

4) DeBeers, a producer of diamonds, is an example of a perfectly competitive firm.

5) Given identical cost conditions, a monopolist will charge a higher price and earn higher profits than would occur if the market had been perfectly competitive.

6) Because a perfectly competitive firm supplies a negligible share of the market output, it has to take or accept the price that is determined in the market.