5. What is a natural monopoly? A) A market where technology is constantly changing 9. If a monopolist VB) A market where the output level that can achieve low production costs is very high elasticity of de C) A monopoly created by law A) 0.62 D) All of the answers are correct B) -0.62 C) 1 D ) - 1 10. Suppose maximizin ATC A ) $6 D MC B ) $2 D C ) $1 MR 6. Suppose the government regulator uses average cost pricing to regulate the monopolist depicted in 11. Conti figure above. The equilibrium under average cost pricing will be at and the firm will make profit. A) B ) A) Point A; positive C ) B) Point B; zero D ) C) Point C; zero D) Point D; negative 12. If monopolist will make 7. If instead the government regulator chose to use marginal cost pricing to regulate the monopolist, the A) Negative; zero profit and the social deadweight loss will be B) Positive; zero C) Negative; positive D) Positive; positive 8. If a monopolist sells 10 units of output for $7 each and 11 units of output at $6 each, what is the marginal revenue associated with the 11th unit? A) $4 B) -$4 C ) - $6 D) $6