Given the table below, if capital is fixed at two units, what is the marginal product of the fourth unit of labor?  Amount of total output produced from various combinations of labor and capital.

In the best case scenario, what is the Fed's response to a negative demand shock?

A. The Fed will decrease the growth rate of the money supply to offset the negative demand shock. B. The Fed will increase the growth rate of the money supply to offset the negative demand shock. C. The Fed will increase government spending to offset the negative demand shock. D. The Fed will decrease government spending to offset the negative demand shock.

In the above figure, if the natural monopoly is regulated with an average cost pricing rule and the firm does not inflate its costs, then consumer surplus will be

A) $192 million. B) $108 million. C) $216 million. D) $60 million.