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1. What is meant by the Monopoly market structure of an industry? What factors determine that market structure?
2. A monopolist sells 100 items a week at a price of ten rials. When he puts the price down to 9 rials, he sells 120 per week. Find average and marginal revenue.
3. What are barriers to entry? How can an existing monopolist deter new entrants?
4. Why might monopoly be considered to be against the public interest? Compare the likely price and output for a monopolist and a perfectly competitive market. Under what circumstances might a monopoly be beneficial?
5. What should the government should do about monopoly?
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