5. What is a natural monopoly? A) A market where technology is constantly changing VB) A market where the output level that can achieve low production costs is very high 9. If a monopolist sells 10 units elasticity of demand along C) A monopoly created by law D) All of the answers are correct A) 0.62 B) -0.62 C) DI - 1 10. Suppose a monopolist maximizing price for t D - ATC - MC A) $6 B ) $2 MR C) Q D) $13 6. Suppose the government regulator uses average cost pricing to regulate the monopolist depicted in figure above. The equilibrium under average cost pricing will be at_ and the firm will make 11. Continuing from t _profit. A) Point A; positive A) $1.25 3) $36 B) Point B; zero C) Point C; zero C) $6 ) $49 D) Point D; negative 12. If the monopo monopolist will make 7. If instead the government regulator chose to use marginal cost pricing to regulate the monopolist, the A) Negative; zero A) P=20-20 profit and the social deadweight loss will be_ B) Positive; zero B) P=20-40 C) Negative; positive C) P=10-20 D) Positive; positive D) P=10-4 13. What is a A) $4 revenue associated with the 11th unit? 8. If a monopolist sells 10 units of output for $7 each and 11 units of output at $6 each, what is the marginal A) Whe B) -$4 B) Whe C ) - $6 C) Wh D ) $6 D) Wh