-Suppose a Firm Is Considering Entering a Market Where It

Multiple Choice

-Suppose a firm is considering entering a market where it would face the demand and cost conditions shown in Figure 10-13.Which of the following statements is correct?

A) The firm should produce output level Q* and charge a single price equal to G.
B) The firm should produce output level Q* and charge a single price equal to F.
C) The firm should produce output level Q* and charge a single price equal to H.
D) The firm should produce output level Q** and charge a single price equal to I.
E) The firm is a natural monopolist that will suffer a long-run economic loss if it charges a single price.