I. Answer true, false, or uncertain. Explain your answer in NO MORE THAN 3 SENTENCES for each question.Answers without proper explanation will receive zero points.

1) (8 points) Total surplus decreases when a monopolist price discriminates.

2) (8 points) The more elastic a demand curve is, the higher the market power is because a monopolist can charge a higher price.

3) (8 points) Under Bertrand competition, each firm charges its price equal to its marginal cost.

4) (8 points) When a firm is a price setter, it can achieve high monopoly profit by increasing both its price and quantity.

5) (8 points) If all the consumers' marginal rates of substitution between any pair of goods are equal, no mutually advantageous trade can occur at all.

6) (8 points) Total surplus cannot be maximized when an allocation is not Pareto efficient.