If a Regulator Sets the Price in a Natural Monopoly

question 6

Multiple Choice

If a regulator sets the price in a natural monopoly equal to the monopolist's marginal cost,the monopolist will _____

• A)experience a loss.
• B)earn an economic profit.
• C)earn an abnormal profit.
• D)shut down in the short run.
• E)face a horizontal demand curve.

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