Erika is the only producer of basketballs. She faces no fixed costs, and a marginal cost of $13 per basketball she produces. Since she is a monopolist, the government has imposed average cost pricing on her (assume that the government knows her cost structure exactly, and that she has had plenty of time to react to the policy i.e. we are considering the long run). Which of these is true about this market? A. The market is inefficient; not enough consumers want to buy basketballs at the set price. B. The market is inefficient; government intervention will create deadweight loss. C. The market is inefficient, since Erika provides less than the socially optimal quantity. D. The market is efficient. -E. Erika makes negative profits under this policy, so she will exit the market