If a Natural Monopolist Were to Sell at the Price

question 63

Multiple Choice

If a natural monopolist were to sell at the price where marginal cost equals demand,then it would be earning

• A) zero economic profits,like a competitive firm in the long-run.
• B) negative profits and would not be able to survive.
• C) positive profits but not would not need to worry about government intervention to regulate it.
• D) positive profits but would still need to worry about possible government intervention to regulate it.