Refer to the above figure. If the government uses rate-of-return ...

[krzymel]

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.

[pratush dev]

Answer to Question 1

C

Answer to Question 2

A

[krzymel]

Gracias!

[xthemafja]

Excellent