SRATC2 SRATC LRAC D B DE Q1 Q2 Q3 Output Figure 2 5) Refer to Figure 2. Increasing returns to scale occur over the output range .... 6) Refer to Figure 2. Decreasing returns to scalo occur over the output range ............ 7) Refer to Figure 2. In the long run, the lowest-cost level of output achievable by this firm is I 8) A single-price monopolist is currently producing an output level where P = $20, MR = $13, ATC= $15, and MC - $14. To maximize profits, what this monopolist should do