Prepare solutions to the problems that are assigned from the material from the preceding week. You may scan this assignment as a pdf and submit the assignment.
Briefly explain why the following statements are TRUE or FALSE, No explanations means no points. :
a. A monopolist produces the quantity at which MC = MR.
b. A monopolist faces a downward sloping MR curve.
c. A monopolist must lower price if it produces additional units.
d, In game theory, the dominant strategy will equal the Nash equilibrium.
e. In the Prisoner's Dilemmna game, both players do not have any strategies concerning each other. Therefore, this game could result in a poor outcome.
f. In a perfectly competitive market, the profit maximization condition is P=MR=MC.
g. The demand curve for a monopolistic competitive firm will be more elastic than for a monopolist.
h. If a firm has MR>MC the firm can still achieve the profit maximization of MR=MC.
i. Explain why implementation for a patent for a pharmaceutical company would be considered a monopoly?