1. Economics
2. Microeconomics
3. Competition
4. Monopolies
5. 69442

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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.