Question 15(Multiple Choice Worth 2 points) (04.02 MC) A firm is the only supplier of sprockets. The allocationficient output of sprockets is 40 million units. Consumers would pay $6 per sprocket at that price level. The firm is producing 30 million sprockets. Which of the following statements must be true? O The firm is producing too much output. O The firm is charging more than the competitive price. O The firm is operating in a monopolistically competitive market. O The firm's marginal revenue is higher than its market demand. O The firm's average total cost is equal to price at its current output level.Question 14(Multiple Choice Worth 2 points) (04.03 MC) The graph below represents the demand graph of a monopolist. MC $20 $18 $16 $14 $12 Price $10 Demand MR 10 20 30 40 60 70 90 100 Quantity The firm uses price discrimination to increase its profits. What is the change in the deadweight loss due to the price discrimination? O-$30 0 530 O-$60 0 560 O IndeterminateQuestion 10(Multiple Choice Worth 2 points) (04.03 HC) A firm operates as a monopolist in a small tourist town. It rents apartments, similar in structure, to tourists. In previous years, the company reduced the rental price in order to rent out additional apartments. The reduction in price reduced the firm's profits. In the current year, the company uses perfect price discrimination to charge for each incremental apartment. Which of the following is true due to the firm's price discrimination? O The consumer surplus increases, and the firm's surplus decreases. O The average price decreases, which reduces the total revenue from the first units sold. O The company's total economic profits decrease as the new price charged impacts all units sold. O Allocation of resources becomes even more inefficient, creating a greater deadweight loss. O The demand is equal to marginal revenue, which equals marginal cost for the last unit sold. Question 11(Multiple Choice Worth 2 points) (04.01 MC) Saturn Unlimited sells vials of asteroid dust. At its current production level, its marginal revenue is lower than the demand curve. This means that O the firm is experiencing economic losses O the firm has market power O the firm is not producing at its profit-maximizing quantity O an increase in the firm's output will increase its profits O the firm is productively efficient