If a conscientious manufacturer underestimates the probability of his product killing someone, the manufacturer will likely take precautions that are not cost justified

Which of the following statements is true about the impact of an increase in the price of lettuce?

a. The demand for lettuce will decrease b. The supply of lettuce will decrease. c. The equilibrium price and quantity of salad dressing will rise. d. The equilibrium price and quantity of salad dressing will fall. e. both a and d are true.

Consider the market for cable television, a natural monopoly, shown in the figure above. If the regulator imposes an average cost pricing rule, the firm provides service to

A) 3.5 million households. B) 6 million households. C) 10.5 million households. D) 12.5 million households.