I. Price discrimination is selling a product at different prices when the underlying cost is the same. Describe the conditions necessary to price discriminate.

II. Complete the following problem: ( A manager of a monopoly firm notices that the firm is producing output at a rate at which average total cost is falling but is not at its minimum feasible point. The manager argues that surely the firm must not be maximizing its economic profits. Is this argument correct?).

III. Monopolies are price makers and as such should be able to set price where they will make a profit. Is this statement true? Why or why not?