1. Which of the following strategies is not an effective strategy to reduce monopoly inefficiency?
a.
antitrust laws
b.
price discrimination
c.
doing nothing
d.
breaking up a natural monopoly into more than one firm
2. Most firms have
a.
no monopoly pricing power.
b.
some monopoly pricing power.
c.
absolute monopoly pricing power.
d.
the ability to earn monopoly profits.
3. Which of the following statements is correct?
a.
Firms with some degree of monopoly power are common, but firms with substantial monopoly power are rare.
b.
Firms with some degree of monopoly power are rare, as are firms with substantial monopoly power.
c.
Firms with some degree of monopoly power are common, as are firms with substantial monopoly power.
d.
Firms with some degree of monopoly power are rare, but firms with substantial monopoly power are common.