True false questions. Briefly explain your answer
1. For a market to be a monopoly, there must be a large number of firms in the market and an identical product.
2. Since a monopolist is a price taker, it cannot have a supply curve.
3. Since the monopolist’s marginal revenue is below its price, its equilibrium output is the same as a perfectly competitive firm.
4. Because a monopoly is the only firm in an industry, it can charge any price it wishes.
5. A profit-maximizing monopolist will always set price above marginal cost.
6. Long-run equilibrium for a monopoly is where economic profit is equal to zero.
7. The social cost of monopolies is measured by the dead weight loss associated with monopolies.
8. In the long-run equilibrium monopoly produces at the minimum of ATC, therefore exhibits productive efficiency
9. In the long-run equilibrium monopoly firm exhibits allocative efficiency since produce the profit maximizing level of output where P = MC
10. Monopoly firm produces and sells identical product
11. Monopoly firm supply curve is a part of its marginal cost curve above minimum of AVC
12. The monopoly engages in no-price competition.
