Please answer!!! I really need the help

Q1. The allocatively efficient quantity of product Z for the whole market is 2 million units. At that quantity, the demand for Z is at $5 and the average total cost for its single supplier is $7. The average total cost does not fall to $5 until 3.5 million units. Based on this data, the market for product Z is

ANSWER CHOICES

A. operating with decreasing returns to scale

B. a natural monopoly

C. a legal monopoly

D. monopolistically competitive

E. productively efficient

Q2.

Use the graph to answer the question that follows.

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