In the production function Y = A(G,P,T) F(K,R,H,N), the exogenous factors are

In the above figure, if the natural monopoly is regulated using a marginal cost pricing rule, then the firm will

A) produce 8 million units and make an economic profit of $24 million. B) produce 12 million units and make zero economic profit. C) produce 16 million units and incur an economic loss of $64 million. D) produce 16 million units and make zero economic profit.

The largest value the Herfindahl index can have is

a. 100, which would indicate a monopoly b. 100 for firms equal in size c. 100,000 d. 10,000 . which would indicate a pure monopoly e. infinity