Which of the following statements explains why monopolies weaken the functioning of the invisible hand? (A) A monopoly is a price-taker. (B) The quantity produced by a monopoly is too low. (C) A monopolist faces an upward-sloping demand curve. (D) A monopolist sets the price of its good below marginal costs. 4. Which of the following is NOT correct for a monopolist's price discrimination? (A) different groups of consumers are charged different prices (B) each buyer exactly their willingness to pay C) buyers with higher willingness to pay are charged higher prices (D) wealthier buyers a lower price in the long run 5. A monopolistically competitive firm (A) carns low but positive economic profits (B) earns high economic profits (C) earns zero economic profits (D) incurs losses a 6. In a competition market, the key difference between supply in the short run and supply in the long run is that firms: (A) are able to enter and exit the market in the short run. (B) are able to enter and exit the market in the long run. (C) will not collude in the short run. (D) will have a total supply that is constant in the long run. a 7. Collusion can work if (A) a colluder can cheat without being detected (B) a colluder values future monopoly profits more than current profits (C) a colluder charges a price higher than its partners (D) a colluder gives secret price discounts

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