18. The pure monopolist's demand curve is relatively inelastic: A) in the price range where marginal revenue is positive. B) in the price range where marginal revenue is negative. C) at all points where the demand curve lies above the horizontal axis. D) in the price range where total revenue is declining. E) in the range where marginal costs are falling 19. Suppose you find that the price of your product is less than minimum ATC but greater than AVC. You should: A) close down because, by producing, your losses will exceed your t otal fixed costs. B) close down because total revenue exceeds total variable cost. C) realize productive efficiency D) minimize your losses by producing where P = MC. E) maximize your profits by producing where MR = MC. 20. A nondiscriminating natural monopolist's marginal revenue curve: A) is perfectly inelastic. D) lies below the price. B) coincides with its demand curve. E) natural monopolies do not have marginal C) will always have a positive elasticity. revenue curves, as they are regulated Figure 3: 21. Using Figure 3: The Deadweight loss is: $19 A) $30 16 B) $60 13 C) $20 10 D) There is no Deadweight loss 22. Using Figure 3: They are earning a per unit: A) Loss of $6 0 100 160 180 210 B) Loss of $960 Quantity C) Profit of $3 D) Profit of $480 23. Using Figure 3: Total Costs are: A) $1600 B) $2080 C) $210 D) $2880 A) MC 24. If a government imposes a lump sum tax on a monopoly which curve is affected? C) ATC B) Demand E) MR D) AVC