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1. If the transit system were regulated to provide the most allocatively efficient quantity of output, what price would it charge? What subsidy would be
1. If the transit system were regulated to provide the most allocatively efficient quantity of output, what price would it charge? What subsidy would be necessary to insure this efficient provision of transit service?
2. Do you think it is possible for government to outlaw everything that businesses could do wrong? if so, why does government not do that? if not, how can regulation stay ahead of rogue businesses that push the limits of the system until it breaks?
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