5. The allocatively efficient quantity of product Z for the whole market is 2 million units. At that quantity, the demand for Z is at $5 and the average total cost for its single supplier is $7. The average total cost does not fall to $5 until 3.5 million units. Based on this data, the market for product Z is perfectly competitive a natural monopoly a legal monopoly monopolistically competitive productively efficient
5. The allocatively efficient quantity of product Z for the whole market is 2 million units. At that quantity, the demand for Z is at $5 and the average total cost for its single supplier is $7. The average total cost does not fall to $5 until 3.5 million units. Based on this data, the market for product Z is perfectly competitive a natural monopoly a legal monopoly monopolistically competitive productively efficient
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5. The allocatively efficient quantity of product Z for the whole market is 2 million units. At that quantity, the demand for Z is at $5 and the average total cost for its single supplier is $7. The average total cost does not fall to $5 until 3.5 million units. Based on this data, the market for product Z is
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a natural monopoly
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a legal monopoly
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productively efficient
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7.If a monopolist begins to engage in perfect
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Firm produces more;
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Firm produces less; charges higher price; economic surplus decreases
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Firm produces more; total economic surplus increases;
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Firm loses
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Firm reaches allocative efficiency; producer surplus decreases; consumer surplus increases
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