If the government requires a natural monopoly to price at marginal cost, Group of answer choices monopoly firms will earn zero economic profits because the price of the good equals the cost of producing that good. monopoly firms will operate at a loss because P < AC. more firms will be able to enter the market. producer surplus will increase because quantity supplied is greater.

Xinhong company is considering replacing one of its manufacturing machines. the machine has a book value of $39,000 and a remaining useful life of 5 years, at which time its salvage value will be zero. it has a current market value of $49,000. variable manufacturing costs are $33,300 per year for this machine. information on two alternative replacement machines follows. alternative a alternative b cost $ 115,000 $ 117,000 variable manufacturing costs per year 22,900 10,100 1. calculate the total change in net income if alternative a and b is adopted. 2. should xinhong keep or replace its manufacturing machine