If a Natural Monopolist Is Unregulated, Then

question 147

Multiple Choice

If a natural monopolist is unregulated, then

• A) the monopoly will produce efficiently from society's point of view.
• B) the monopoly will produce inefficiently from society's point of view.
• C) the monopolist will be earning just a normal rate of return on investment.
• D) the monopolist will determine the profit maximizing quantity by equating marginal cost to the demand curve.