• Explain the effects of low price-guarantee on the price. (2 Marks)
  • What do you understand by discriminatory monopoly? Bring out the conditions that enables the monopoly firm to charge different prices for its product in different markets. (2 Marks)
  • The figure below shows the demand and cost curves for a monopolist. Assume there are no fixed costs in the market and an unlimited number of units of the product can be produced at a marginal cost of $10 per unit. As a result average total cost and marginal cost are the same.