True or False? Explain your answer.
To obtain an S you can only fail in one answer.
1. A monopolist does not necessarily have to produce a quantity at which MC=MR.
2. For a monopoly the price effect is less important that the quantity effect.
3. If a cable company is a monopoly in a small town, it can charge very high prices.
4. For a monopoly the marginal revenue is constant because the price is the same for everybody.
5. A monopoly can always charge different prices to different customers if needed.
6. If the monopoly is not making good money, it can close the doors and leave with no penalty.
7. The monopoly does whatever it wants, for some reason it is the only supplier in a certain market.
8. A natural monopoly has to have a price per unit higher than the total cost per unit.
Determine if statement is true or false. If statement is false, make it true.