Which of the Following Is True of a Natural Monopoly

question 13

Multiple Choice

Which of the following is true of a natural monopoly?

• A)If regulated, the firm will have a higher level of output than if it was unregulated.
• B)If regulated, the firm will have a lower level of output than if it was unregulated.
• C)If regulated, the firm will be allowed to charge a price higher than its average cost.
• D)If regulated, the firm will earn economic profit in the long run.
• E)If regulated, the firm will experience diseconomies of scale.

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