Question 1
Refer to the information provided in Figure 13.7 below to answer the question(s) that follow.
Refer to Figure 13.7. If the government regulates Armstrong Cable so they can earn only a normal return, the price would be set at
◦ $12.00.
◦ $12.50.
◦ $13.00.
◦ $16.00.
Question 2
Refer to the information provided in Figure 13.7 below to answer the question(s) that follow.
Refer to Figure 13.7. If the government regulates Armstrong Cable so they can earn only a normal return, the price would be set ________ than if the company was not regulated.
◦ $4 lower
◦ $1 higher
◦ $3 lower
◦ $0.50 lower
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