Multiple Choice
If regulators set price equal to marginal cost for the natural monopoly inExhibit 153, then from the usual profitmaximizing position, price changesfrom
A) $24 to $18, and quantity increases from 5 to 8
B) $14 to $20, and quantity increases from 5 to 8
C) $24 to $18, and quantity remains unchanged
D) $24 to $18, and quantity increases from 5 to 8.
E) $24 to $22, and quantity increases from 5 to 10
Correct Answer:
Verified
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