In the following figure, the first panel shows a market situation prior to regulation and the second panel shows the effects of regulation.Figure 14.2
In the figure,
D: Demand curve for automobiles
S 1 : Supply curve of automobiles prior to regulation
S 2 : Supply curve of automobiles after regulation
FG: Clean up cost per unit
-A regulated natural monopoly is allowed to set a price which will enable it to earn an above-normal profit.

Question

In the following figure, the first panel shows a market situation prior to regulation and the second panel shows the effects of regulation.Figure 14.2
  In the figure,
D: Demand curve for automobiles
S 1 : Supply curve of automobiles prior to regulation
S 2 : Supply curve of automobiles after regulation
FG: Clean up cost per unit
-A regulated natural monopoly is allowed to set a price which will enable it to earn an above-normal profit.

Quizplus · Accepted Answer

The statement is not related to the given figure or information. Therefore, the answer is false.

In the Following Figure, the First Panel Shows a Market