Refer to the above figure. Which of the graphs is consistent with the long-run aggregate supply curve?

Consider the market for cable television in the figure above. This graph depicts a natural monopoly because the

A) marginal cost curve is constant. B) demand curve is downward sloping. C) average cost curve is declining as it crosses the demand curve. D) marginal revenue curve is downward sloping.

Suppose the economy's production function is Y = AK0.3N0.7. If K = 2000, N = 100, and A = 1, then Y = 246. If K and N each increase by 5 percent, and A is unchanged, by how much does Y increase?

A) 5% B) 10% C) 15% D) 20%