1. A monopolist sets a higher price in a market where price elasticity of demand is higher, as compared to

another market. Is the statement true, false or uncertain? Explain and justify your answer.

2. If a firm satisfies profit maximizing condition, it necessarily makes positive profit. Is the statement

true, false or uncertain? Explain and justify your answer.

3. The marginal cost curve is the supply curve of a firm. Is the statement true, false or uncertain? Explain

and justify your answer.