1. Explain the term barrier to entry as it pertains to monopoly market power. List and explain four different types of barriers to entry.
2. Assume a nonregulated monopoly has achieved market dominance. Fully explain how the nonregulated monopoly determines profit maximizing level of output and price in the short run.
3. Explain why a nonregulated monopoly will always choose to set price in the elastic region of demand curve.
4. What conditions must be met for a monopoly to charge different prices to different customers?
5. Governments sanctify the existence of natural monopolies such as utility companies. Fully explain the economic rationale for granting monopoly power to such companies.
6. Fully explain the potential inefficiencies and efficiency of a nonregulated monopoly.