Which of the Following Is True of a Natural Monopoly

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 an unregulated firm, whether the regulation is based on average cost, marginal cost, or normal profit.
B) If regulated, the firm will have a lower level of output than an unregulated firm, whether the regulation is based on average cost, marginal cost, or normal profit.
C) If regulated, the firm that is only allowed a normal profit will be allowed to charge a price in excess of its average cost.
D) If regulated, the firm that is only allowed a normal profit will be allowed to produce more than a firm that must set a price equal to its marginal cost.
E) If regulated, the firm that is only allowed a normal profit will be allowed to produce more than a firm that must set a price equal to its average cost.