Refer to the Graph for a Pure Monopoly

Multiple Choice

Refer to the graph for a pure monopoly. If the government regulated the monopoly and made it charge the socially optimal price, this price would be

A) higher than the profit-maximizing price.
B) higher than the fair-return price.
C) lower than both the fair-return price and the profit-maximizing price.
D) between the fair-return price and the profit-maximizing price.