Distributive efficiency is not being achieved at equilibrium because

	A.	This firm is making zero economic profits at equilibrium.
	B.	P > MC at equilibrium
	C.	The firm is earning economic profits at equilibrium.
	D.	The firm is not producing at the minimum point on its ATC curve.

Why does a monopolist's demand curve slope downward?

	A.	Like the purely competitive firm, the monopolist must produce at the minimum point on its average total cost curve, and must there adjust its price in order to sell the quantity that would achieve that goal.
	B.	Unlike the purely competitive firm, the monopolist has no pricing power because of the threat of competition entering the industry. It mus therefor keep its price as low as possible.
	C.	Unlike the purely competitive firm, the monopolist will not produce at the point where marginal revenue is equal to marginal cost. It will charge the highest price possible.
	D.	Because the monopolist is the entire industry, a change in the price it charges for its produce, unlike the purely competitive firm, has a significant effect on market supply. It must therefore lower the price it charges in order to sell more units of the product.

Which of the following is not an example of a barrier to entry?

	A.	A financial barrier -- such as the huge amount of money required to become an economy of scale in capital intensive industries.
	B.	A natural barrier -- where competition within the industry would result in a less efficient outcome.
	C.	A Consumer barrier -- prevents resources from entering an industry because consumers do not buy the product.
	D.	A legal barrier -- such as a patent, a license or a copyright.