Exhibit 15-5 Consider the Natural Monopoly Depicted in Exhibit

question 20

Multiple Choice

Exhibit 15-5 Consider the natural monopoly depicted in exhibit 15-5.What price should regulators set in order for the natural monopolist to at least break-even?

• A)$5
• B)$10
• C)$15
• D)$20
• E)$25

---

Definitions:

Sensory Adaptation

The diminished sensitivity to a stimulus as a consequence of constant exposure to that stimulus.

Sensory Threshold

The minimum level of stimulus intensity required for a sensory system to detect a stimulus.

Sensory Deprivation

A condition in which one or more of the senses is diminished or eliminated.

Sensory Neglect

A condition where an individual fails to recognize or respond to stimuli on one side of the body, typically resulting from brain damage.