Author Question: Refer to the above figure. If the government uses rate-of-return regulation for the natural ... (Read 108 times)

krzymel · **on:** Jun 29, 2018

Refer to the above figure. If the government uses rate-of-return regulation for the natural monopolist, the firm will charge price

A) P5 and sell Q1 units.
B) P2 and sell Q1 units.
C) P3 and sell Q3 units.
D) P1 and sell Q4 units.

Question 2

A friend of yours receives a government voucher for an apartment in a public housing project. This apartment represents

A) a government-sponsored good.
B) the free-rider problem.
C) a public good.
D) the drop-in-the-bucket problem.