Use the Information Below to Answer the Following Questions

Multiple Choice

Use the information below to answer the following questions.
Fact 12.1.1
The following statements give some information about seven markets.
1.Coca-Cola cuts its price below that of Pepsi-Cola in an attempt to increase its market share.
2.A single firm,protected by a barrier to entry,produces a personal service that has no close substitutes.
3.A barrier to entry exists,but the good has some close substitutes.
4.A firm offers discounts to students and seniors.
5.A firm can sell any quantity it chooses at the going price.
6.The government issues Nike an exclusive licence to produce golf balls.
7.A firm experiences economies of scale even when it produces the quantity that meets the entire market demand.
-Refer to Fact 12.1.1.The firm described in statement ________ is a natural monopoly.The firm described in statement ________ is a legal monopoly.

A) 7;6
B) 2;7
C) 6;7
D) 2;6
E) 7;4