Question Two a. Will an increase in the demand for a monopolist's product always result in a higher price? Explain. (5 marks)) b. Caterpillar Tractor, one of the largest producers of farm machinery in the world, has hired you to advise it on pricing policy. One of the things the company would like to know is how much a 5-percent increase in price is likely to reduce sales. What would you need to know to help the company with this problem? Explain why these facts are important. (5 marks) c. What are some of the different types of barriers to entry that give rise to monopoly power? Give an example of each (5 marks) d. Why will a monopolist's output increase if the government forces it to lower its price? (5 marks) Question five Which do you think is more likely to be a fixed factor of production for an ice cream producer for the next two months; its factory building or its workers who operate the machine? Explain your answer (6 marks) 11. With examples, explain the difference between the concept of economies of scale and economies of scope (6 marks) ifi. What is the relevance of economists considering opportunity cost a part of the firm's costs contrary to accountants? Give a relevant example. (8 marks)