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-Refer to the Above Figure

Question 97

Multiple Choice

  -Refer to the above figure. If the government uses rate-of-return regulation for the natural monopolist, the firm will charge price A)  P5 and sell Q1 units. B)  P2 and sell Q1 units. C)  P3 and sell Q3 units. D)  P1 and sell Q4 units.
-Refer to the above figure. If the government uses rate-of-return regulation for the natural monopolist, the firm will charge price


A) P5 and sell Q1 units.
B) P2 and sell Q1 units.
C) P3 and sell Q3 units.
D) P1 and sell Q4 units.

Correct Answer:

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