Which of the following is a common explanation for why monopoly occurs? 0 Barriers to entry 0 Lack of interest by potential competitors 0 Inadequate government regulation 0 Greed by the seller 0 Dissatisfaction with the absence of profits in perfect competition A monopoly chooses optimal output and then selects price consistent with the height of the 0 average total cost curve 0 marginal cost curve 0 marginal revenue curve 0 producer surplus O demand curve Which of the following is most likely_ to have monopoly power? 0 a local restaurant 0 Chapters/Indigo (a large Canadian bookstore) 0 your local gas station Initially a number of firms produce bread and the market attains a competitive market equilibrium. One firm then buys all the other firms and becomes a monopolist in the market for bread. How do you expect the monopoly outcome to differ from the competitive outcome? 0 the same price but smaller quantity 0 lower price and larger quantity 0 lower price and lower quantity O the same price but smaller quantity 0 lower price and larger quantity 0 lower price and lower quantity 0 a larger quantity but we cannot predict what will happen with price 0 higher price and smaller quantity Pat's Cold Remedies has bought all of the other firms which produce cough syrup. Pat is now going to operate as a monopolist. Which of the following changes are we likely to observe? (Select all that apply) C] consumer surplus is larger C] consumer surplus is smaller C] total costs of production are larger C] there is a deadweight loss C] profits in the market are larger Which of the following are characteristic of a typical monopoly outcome? (Select all that apply) C] profits are positive [3 marginal revenue is negative C] profits are zero C] the market outcome is efficient C] Price is greater than marginal cost