Regulation of a natural monopoly with a downward-sloping average cost curve usually produces

a price and output combination

that forces the firm to produce a rate of output consistent with price equal to average cost.

that forces the firm to produce a rate of output consistent with price equal to marginal cost.

that forces the monopoly to produce where marginal revenue equals marginal cost.

that forces the firm to produce an output rate consistent with marginal cost equal to average cost.

Which of the following is correct?

Changes in average variable cost change marginal cost, which changes average total cost, which changes marginal productivity.

Changes in marginal productivity change marginal cost, which changes average variable and average total cost.

Changes in average variable and average total cost change marginal cost, which changes marginal productivity.

Changes in marginal cost change marginal productivity, which changes average variable and average total cost.

If a perfectly competitive firm and a single-price monopolist face the same demand and cost curves, then

both the competitive firm and the monopolist will attain resource-allocative efficiency.

the competitive firm will attain resource-allocative efficiency, but the monopolist will not.

the competitive firm will not attain resource-allocative efficiency, but the monopolist will.

the competitive firm will attain resource-allocative efficiency, but the monopolist may or may not, depending upon the demand for its product.

neither the competitive firm nor the monopolist will attain resource-allocative efficiency.

Suppose that a firm produces hard candies using both machines and labor, and that its quantity of machines is currently fixed but it can vary the number of workers. As more workers are added to operate the machines, output increases. Is this a refutation of the law of diminishing marginal returns?

Yes, because the only way that this could occur is if the number of machines being used is also increasing.

No, because we must be observing output in the long run if the stated scenario is occurring.

No, because it is entirely possible for output to increase even when the law is in operation.

Yes, because the law definitely states that output will decrease as more workers are added