True or false? Economies of scale can lead to a natural monopoly. True False American Airlines charges $400 for a flight from New York to Los Angeles. Suddenly, a new start-up airline starts charging $225 for a flight from New York to Los Angeles. so American Airlines drops the cost of a New York/Los Angeles flight to $97. This is an example of: Exclusive dealing Predatory pricing Bundling Tying salesWhich of the following can legally discourage competition? Select all that apply. Well-known brands and advertising Patents Predatory pricing Government regulation A curve increases and then decreases as output goes up. monopoly's total revenue monopoly's perceived demand perfect competitor's perceived demand perfect competitor's marginal costPrice is set greater than marginal revenue when a monopoly is at the break even point at the shutdown point wishing to maximize profit operating at allocationficiencyWhich of the following is true of pure monopolies? Select all that apply. Monopolies may produce at lower average cost than perfectly competitive firms Monopolies are allocationy inefficient Monopolies produce deadweight losses to society Monopolies restrict output and drive up the priceTrue or false? The demand curve for a monopoly is the same as the market demand curve. True False When policing natural monopolies, the government will sometimes resort to doing what? Shutting down a rm Regulating price and/or quantity of output Legalizing the monopoly Which of the following is true about mergers? The government tries to prevent all mergers Mergers never hinder competition Most mergers are beneficial to consumers The government only uses objective numerical tools to evaluate mergersWhat is the HHI for an industry with the following firms and market shares? Firms Market Shares Firm #1 26% Firm #2 20% Firms #3, 4, and 5 that each have 11% of the market 33% Firm #6 9% Firms #7, 8, and 9 that each have 4% of the market 12% 68 1,568 2,390 4,856