5.

(04.02 MC) The allocatively efficient quantity of product Z for the whole market is 2 million units. At that quantity, the demand for Z is at $5 and the average total cost for its single supplier is $7. The average total cost does not fall to $5 until 3.5 million units. Based on this data, the market for product Z is (2 points)

	perfectly competitive
	a natural monopoly
	a legal monopoly
	monopolistically competitive
	productively efficient

6.

(04.03 MC) The graph below represents the demand graph of a monopolist. (2 points)

$22 MC $20 $18 $16 $14 $12 Price $10 $8 $6 $4 Demand $2 MR 10 20 30 40 50 60 70 80 90 100 Quantity