Choose the false statement about monopoly.O Natural monopolies usually enjoy economies of scale in production overa large range of output.○ The profit-maximizing monopolist sets its price as a percentage markupover the marginal cost.○ Patents are a possible reason for monopolies to exist.○ If the monopolist tries to sell one more unit, it faces a positive priceeffect and a negative quantity effect. Consider the labor market, i.e. the market for hours of work. Whenanalyzing labor markets, price is just the hourly wage (e.g. 10dollars an hour), and quantity is the number of hours demanded (byfirms) or supplied (by workers). Suppose the government imposes aminimum wage of $15 per hour. Select the true statement. (Hint: Ifthe market equilibrium is above the minimum wage anyway, it willnot have any effect. We say that it does not bind.)○ If the demand and supply functions are given by Q = 60 - 2P and Q =-10 + P, where Q is in million hours and P is in dollars per hour, theimposition of the minimum wage will cause a deadweight loss in themarket.○ If the demand and supply functions are given by Q = 10 - P and Q = P,where Q is in million hours and P is in dollars per hour, there will be anexcess demand for labor.All substantive statements are false.○ If the inverse demand function is P = 100 -15Q + 0.5Q², Q<=10, andthe supply function is Q = P²/24, where Q is in million hours and P is indollars per hour, the imposition of the minimum wage will cause themarket quantity of work hours to increase.

A monopoly, as described by Irving Fisher, is a market with the "absence of competition", creating a…

Choose the false statement about monopoly. O Natural monopolies usually enjoy economies of scale in production over a large range of output. ○ The profit-maximizing monopolist sets its price as a percentage markup over the marginal cost. O Patents are a possible reason for monopolies to exist. O If the monopolist tries to sell one more unit, it faces a positive price effect and a negative quantity effect.