Refer to the given data. If the wage rate is $20, how many workers will the firm choose to employ?

If an average cost pricing rule is imposed on the natural monopoly shown in the figure above, then the price will be

A) $2. B) $4. C) $5. D) $6.

Let the production function be q = ALaKb. The function exhibits constant returns to scale if

A) a + b = 1. B) a + b > 1. C) a + b < 1. D) Cannot be determined with the information given.