Technological progress means that we produce more output with the same amount of inputs

The firm shown in the figure above is

A) a natural monopoly because its LRAC curve slopes downward where it intersects the demand curve. B) not a natural monopoly because its LRAC curve slopes downward where it intersects the demand curve. C) not a natural monopoly because its MC curve is horizontal. D) not a natural monopoly because its MC curve is below its LRAC curve.

Figure 4-19

After a strike against the Financial News in London began, the number of copies of the competing Broad Street Journal sold in England increased dramatically, yet there was no increase in price. Which supply and demand graph in Figure 4-19 represents the situation for the Broad Street Journal before the strike started?

a.
1

b.
2

c.
3

d.
4