In the two-period dynamic monopoly, if the monopolist succeeds in selling a sufficiently high quantity in the first period,

Question 24 options:

A)	the second-period demand curve will become horizontal.

B)	the second-period demand curve will become unit elastic.

C)	the second-period demand curve will lie close to the price axis.

D)	the second-period demand curve will shift substantially to the right.

If the government attempts to force a natural monopoly to charge a price equal to marginal cost,

Question 21 options:

A)	the natural monopoly will still make high profits.

B)	total welfare is maximized.

C)	the natural monopoly's marginal cost curve will shift up.

D)	the natural monopoly will shut down.