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Chapter 10: Monopoly REVIEW QUESTIONS1. A monopolist is producing at a point at which marginal cost exceeds marginal revenue. How should it adjust its output to increase profit?2. We write the percentage markup of prices over marginal cost as (P - MC)/P. For a profit-maximizing monopolist, how does this markup depend on the elasticity of demand? Why can this markup be viewed as a measure of monopoly power?lOMoARcPSD|1675695
3. Why is there no market supply curve under conditions of monopoly?4. Why might a firm have monopoly power even if it is not the only producer in the market?5. What are some of the sources of monopoly power? Give an example of each.