Question 1
The best UK example of a natural monopoly is
◦ BT.
◦ British Gas.
◦ a water company.
◦ Virgin Trains.
Question 2
The RPI-X method of regulation refers to
◦ companies having to take inflation into account when setting prices.
◦ regulators controlling inflation through controls over the private sector as well as the public sector.
◦ companies being capped on the amount that they can raise prices.
◦ companies having their profits capped.