NARRBEGIN: Exhibit 15-1-1 Exhibit 15-3

NARRBEGIN: Exhibit 15-1-1
Exhibit 15-3

-If regulators set price equal to marginal cost for the natural monopoly in Exhibit 15-3, then from the usual profit-maximizing position, price changes from

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