Refer to the graph shown. When market supply shifts from S0 to S1, the revenue loss to suppliers resulting from the lower price is shown by area:

Complete the following table assuming that (a) MPS = 1/5, (b) there is no government and all saving is personal saving.

With a natural monopoly, the fair return price:

A. Is allocatively efficient; the socially optimal price is allocatively inefficient B. Is allocatively inefficient; the socially optimal price is allocatively efficient C. And the socially optimal price are both allocatively inefficient D. And the socially optimal price are both allocatively efficient