Q1. "When the firms in the industry are just able to cover their cost of production, economic profit is 0. Consequently, if demand decreases, source prices are also decreases even a little bit, all of firms in industry will be focused out of business." Is it True or false? Explain.

Q2. For each of the following examples, explain why and how a Monopolist would try to price discriminate:

a) Air transport for businesspeople and tourists.

b) Serving food on weekdays to corporate people and retired people.

c) A theatre that shows the same movie to large families and to individuals and couples.