Point out whether each of the given statements is true or false, and describe why.
1. The Justice Department generally concerns itself with significant or flagrant offences under the Sherman Act, as well as with mergers for monopoly covered by section 7 of the Clayton Act.
2. When a signal seller is confronted in a market by many small buyers, monopsony power enables the buyers to obtain lower prices than those that would prevail in a competitive markets.
3. A nature monopoly results when the profit-maximizing output level occurs at a point where long-run average costs are declining.
4. Downward-sloping industry demand curves characterized both perfectly competitive and monopoly markets.
5. A decrease in the price elasticity of demand would follow an increase in monopoly power.