Refer to Figure 3-2. A decrease in the price of inputs would be represented by a movement from

Which of the following statements regarding perfect price discrimination is FALSE?

A) Only part of consumer surplus is captured by the firm as producer surplus. B) For the firm, the market demand curve becomes the firm's marginal revenue curve. C) The monopoly produces the output at which the marginal revenue equals the marginal cost. D) No deadweight loss is created.

If government regulators force a natural monopoly to produce where price equals marginal cost, the monopoly will earn

a. a "fair return" b. positive economic profit c. zero economic profit d. negative economic profit e. greater economic profit than if it were unregulated