5. True, false, or uncertain. Explain briefly but specifically. a. A monopolist with no costs maximizes marginal revenue. b. The government can eliminate deadweight loss by regulating a natural monopoly so that price equals marginal cost. c. Airlines that offer leisure and business airfares are practicing perfect price discrimination. d. A monopolist facing perfectly elastic demand receives no producer surplus.
5. True, false, or uncertain. Explain briefly but specifically. a. A monopolist with no costs maximizes marginal revenue. b. The government can eliminate deadweight loss by regulating a natural monopoly so that price equals marginal cost. c. Airlines that offer leisure and business airfares are practicing perfect price discrimination. d. A monopolist facing perfectly elastic demand receives no producer surplus.
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Transcribed Image Text:5. True, false, or uncertain. Explain briefly but specifically.
a. A monopolist with no costs maximizes marginal revenue.
b. The government can eliminate deadweight loss by regulating a natural monopoly so
that price equals marginal cost.
C. Airlines that offer leisure and business airfares are practicing perfect price
discrimination.
d. A monopolist facing perfectly elastic demand receives no producer surplus.
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