Answer one of True , false , or uncertain . For each question, explain your answer in three or less sentences. A score of 0 will be awarded if there is no proper explanation.

1. Since monopolies also have incentives for cost minimization, productive inefficiency under monopoly is negligible.

2. A firm's monopoly power is limited by the price elasticity of demand

3. Under rate-of-return regulation, firms have no incentive to reduce production costs.