Declining average total cost with increased production is one of the defining characteristics of a natural monopoly

The figure above shows the relationship between the price of a dozen roses and the quantity of roses a florist can sell. The relationship between the price and the quantity the florist can sell is

A) positive. B) negative. C) nonexistent. D) linear. E) cross-sectionally trended.

Positive economic profits in a perfectly competitive market imply that:

A) producers are earning more than their opportunity cost. B) existing firms are likely to leave the market. C) the cost of production is equalized across producers. D) government intervention is required to stabilize the market.