Natural gas is a natural monopoly. The figure shows the market for natural gas in the city of Lucknow. When an average cost price rule regulation is imposed, the price per household per month is ________.
A) 30 and 20,000 household are served
B) 10 and 40,000 household are served
C) 25 and 20,000 household are served
D) 20 and 30,000 households are served
Question 2
In the above figure, if the market is competitive and unregulated
A) more than the efficient amount of output will be produced.
B) less than the efficient amount of output will be produced.
C) the efficient amount of output will be produced.
D) the distribution of income will be fair.
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