3. True, false, or uncertain. Explain briefly but specifically. a. b. c. Marginal revenue is equivalent to demand if demand is perfectly elastic. A monopolist with no costs maximizes marginal revenue. Airlines that offer leisure and business airfares are practicing perfect price discrimination. A monopolist facing perfectly elastic demand receives no producer surplus. For a monopoly to exist in equilibrium. there must be some barrier to entry. The objective of public policy should be to eliminate deadweight loss