QUESTION 9 Arm will engage in price discrimination when it believes that doing so will increase total: revenue. quantity sold. production cost. ' prots. QUESTION 10 A natural monopoly could possibly arise when: there are large economies of scale relative to the industry's demand. " the government allows unrestricted access to a market. there are diseconomies of scale in an industry. companies band together to form a larger company. QUESTION 11 Aone-rm industry with no close product substitutes and substantial barriers to entry is called a(n): monopsony. monopoly. competitive industry. oligopoly. QUESTION 12 All of the following conditions are required for successful price discrimination, EXCEPT that sellers must: have some market power. be able to separate the market into different consumer groups based on their elasticities of demand. be in an industry with no barriers to entry. be able to prevent arbitrage. Figure: Determining Monopolist Profit MC ATC e a b Price and Cost C g D MR h d Output Reference: Ref 9-2 (Figure: Determining Monopolist Profit) In the graph, the profit earned by the monopolist is represented by the rectangle: O abfe. aceg. O adeh. O abcd