Government regulation of a natural monopoly causes its average cost curve to shift downward.

If hot dog vendors at baseball games want to maximize their total sales revenue, they will have to

A) be willing to experience reduced hot dog expenditure by baseball fans. B) set the price of their hot dogs so that the demand is unit elastic. C) sell as many hot dogs as they can, even if it means lowering price. D) raise their price, even if it means selling fewer hot dogs.

Being a price taker essentially means

A) a firm can influence the market price. B) a firm cannot influence the market price. C) the firm cannot legally set its price above the market price. D) the firm cannot legally set its price below the market price.