1/A statement that best reflects an evaluation of monopoly firms is that:
A/they are economically efficient.
B/they have little or no market power.
C/regulation is sometimes a solution to monopolies.
2/If a change in fixed cost in the long run raises average total cost above the demand curve:
A/price and output will remain unchanged.
B/more monopolies will enter.
C/the monopoly will go out of business.
D/none of the above is true.
3/A _______ price charged by a monopoly than would be the case if P = MC _______ consumer surplus.
A/lower; decreases
B/higher; reduces
C/higher; increases
D/None of the above is true

