The slope of a budget constraint represents:
A) the price of the good measured along the horizontal axis.
B) the price of the good measured along the vertical axis.
C) the opportunity cost of one good in terms of another.
D) the money income of the consumer.
Question 2
The figure above shows a natural monopoly that the government must regulate. Which of the following pairs most likely results in similar outcomes?
A) marginal cost pricing and rate of return regulation
B) marginal cost pricing and a two-part tariff
C) average cost pricing and rate of return regulation
D) predatory pricing and price caps
E) marginal cost pricing and price cap regulation
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