7. How is monopoly different from perfect competition?
8. What is a barrier to entry? Give some examples.
9. What is a natural monopoly?
10. What is a legal monopoly?
11. What is predatory pricing?
12. How is intellectual property different from other property?
13. What legal mechanisms protect intellectual property?
14. In what sense is a natural monopoly “natural”?
15. How is the demand curve perceived by a perfectly competitive firm different from the demand curve
perceived by a monopolist?
16. How does the demand curve perceived by a monopolist compare with the market demand curve?
17. Is a monopolist a price taker? Explain briefly.
18. What is the usual shape of a total revenue curve for a monopolist? Why?
9 • Self-Check Questions 233
19. What is the usual shape of a marginal revenue curve for a monopolist? Why?
20. How can a monopolist identify the profit-maximizing level of output if it knows its total revenue and total
cost curves?
21. How can a monopolist identify the profit-maximizing level of output if it knows its marginal revenue and
marginal costs?
22. When a monopolist identifies its profit-maximizing quantity of output, how does it decide what price to
charge?
23. Is a monopolist allocatively efficient? Why or why not?
24. How does the quantity produced and price charged by a monopolist compare to that of a perfectly
competitive firm?