1.10. True or False?

a. When a monopoly is maximizing its profits, price is greater than marginal cost.

b. For a monopoly producing a certain amount of output, price is less than marginal revenue.

c. When a monopoly is maximizing its profits, marginal revenue equals marginal cost.

d. Ironically, if a government regulator sets a fixed price for a monopoly lower than the unregulated price, it is typically raising the marginal revenue of selling more output.

e. In the United States, government regulation of cable TV cut down the price of premium channels to average cost.

f.

When consumers have many options, monopoly markup is lower.

g. A patent is a government-created monopoly.