Question $1$:

A monopoly that is maximizing profits operates in the$$elastic$$portion of the demand curve.

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Question $2$:

Why might luxury$-$goods retailers limit purchases on a good by consumers "due to popular demand"?

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Question $3$:

The fact that a monopoly has to take the shapes of marginal cost AND marginal revenue into account when making decisions is reflected in the fact that monopolies$$do not have a supply curve.

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Question $4$:

Privatization of a state$-$owned monopoly can$$allow government to capture future monopoly earnings.

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Question $5$:

The ability of a monopoly to charge a price that exceeds marginal cost depends on the$$price elasticity of demand.

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Question $6$:

Disneyland price$-$discriminates because$$local residents likely wouldn't go to the park at prices Disneyland can charge for tourists, which would reduce Disneyland's profits.

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Question $7$:

In a monopoly market, total surplus$$is less than in a competitive market.

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Question $8$:

The more inelastic the demand curve, a monopoly will$$lose fewer sales as it raises its price.

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Question $9$:

A monopoly shuts down when$$the short run price is below its average variable costs.

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Question $10$:

Why do firms engage in price discrimination?$$To increase profit.

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Question $11$:

One difference between a monopoly and a competitive firm is that$$a monopoly faces downward$-$sloping demand curve.

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Question $12$:

A monopolist that chooses price$$produces the same amount as a monopolist that chooses quantity.

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Question $13$:

A profit$-$maximizing monopolist$$is NOT guaranteed to make a positive profit.

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Question $14$:

For a monopoly, marginal revenue is less than price because$$the demand for the firm's output is downward sloping.

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