question 1 (half page) – please use sample words and sample sentencesCompany A is part of an oligopoly industry. Company A issues a press release stating that it will be raising its prices in 6 months. Why might the company announce this plan so far in advance? How might other firms react to this press release? How might doing this result in company A earning higher profits in the future, considering that this is an oligopoly industry? Do you think oligopoly firms in the real world use this type of strategy to fix prices? Explain.Question 2 (1-3 sentences)Your book mentions the possible efficiency that can occur when firms advertise. This is based on the idea that advertising can provide necessary information to avoid market failure. Can you think of an example where advertising has helped provide you with information about a potential purchase? Describe how advertising helped you make a better choice. Do you think advertising usually provides necessary information, or is it usually useless?Question 3Public utilities (such as electric or gas) are examples of natural monopolies. There are basically four ways for the government to deal with a natural monopoly: the government can let the monopoly operate with no restriction, the government can force the natural monopoly to split up into smaller companies, the government can take over the monopoly and provide the service, or the government can regulate the price the monopolist can charge. Which of these options is the best in the case of a public utility? Why is your preferred option the best?