The 1920s was a period of alcohol prohibition in the United ...

[james0929]

The 1920s was a period of alcohol prohibition in the United States. During the 1920s,
 
  A) the purchase and sale of alcohol was illegal.
  B) people coordinated their alcohol production and consumption activities in illegal, underground markets.
  C) the supply of alcohol became quite inelastic.
  D) all of the above were true.
  E) none of the above were true.

Question 2

What potential problem is there with rate of return pricing?
 
  What will be an ideal response?

[underwood14]

Answer to Question 1

D

Answer to Question 2

The monopolist might exaggerate its costs and mislead the regulator. In this case, the regulator allows the firm to increase its price, so the monopolist has no incentive to operate efficiently and cost effectively.

[james0929]

Wow, this really help

[recede]

Thanks for the timely response, appreciate it