If the Distribution of Water Is a Natural Monopoly, Which

Multiple Choice

If the distribution of water is a natural monopoly, which of the following is true?
(i) allowing for competition among different firms in the water distribution industry is efficient
(ii) a single firm can serve the market at a lower average total cost
(iii) multiple firms will each have to pay large fixed costs to develop their own network of pipes

A) (i) and (ii)
B) (ii) and (iii)
C) (i) and (iii)
D) (i) only