Exhibit 15-1 -If Regulators Set Price Equal to Marginal Cost for the Marginal

Exhibit 15-1

-If regulators set price equal to marginal cost for the natural monopoly in Exhibit 15-1,then from the usual profit-maximizing position,price changes from

A) $24 to $20,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