Question 1
A monopoly can be beneficial when
◦ demand is inelastic.
◦ supply is elastic.
◦ the monopolist is a price maker.
◦ there are economies of scale.
Question 2
Which of the following will NOT encourage research and development?
◦ R&D free riders
◦ Inter-firm co-operation
◦ Patents
◦ Public provision of R&D funding