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18) Another alien spaceship passes by the Earth's orbit on December 21, 2012. Instead of helping out for free, the alien on board decide to

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18) Another alien spaceship passes by the Earth's orbit on December 21, 2012. Instead of helping out for free, the alien on board decide to sell humans inter-galactic teleporters to the remaining humans who did not make onto the previous spaceship. This market is illustrated by the graph above. How many teleporters should the aliens sell? a. 3 b. 4 c. 5 d. 6 e. As many as possible 19) How much revenue do the aliens make? a. 59 b. 516 c. 518 d. 520 e. 522.5 20) Because the aliens' monopolistic actions are not helping mankind escaping extinction, the Galactic Supreme Council decides to regulate this market. The Council forces marginal cost pricing upon these aliens. What would likely be the consequence? a. As the price lowers, more humans are able to afford a teleporter. b. The aliens no longer make any profit, so they leave and humanity faces unavoidable destruction. c. The quantity produced increases and price drops, helping more humans to escape. d. The aliens introduce Teleporter Home, Teleporter Home Premium, Teleporter Professional and Teleporter Ultimate to suit different consumer needs. e. The barrier of entry breaks, allowing more aliens to come and sell teleporters

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