Select whether each of the following statements is True or False and explain why.
Do not forget to give an explanation of why.
1. When a single seller is confronted in a market by many small buyers, monopsony power enables the buyers to obtain lower prices than those that would prevail in a competitive markets.
2. A natural monopoly results when the profit-maximizing output level occurs at a point where long-run average costs are declining.
3. Downward-sloping industry demand curves characterize both perfectly competitive and monopoly markets.
4. A decrease in the price elasticity of demand would follow an increase in monopoly power.© BrainMass Inc. brainmass.com October 9, 2019, 5:50 pm ad1c9bdddf
Downward-sloping industry demand curves are examined.