Which of the Following Statements Is True

Multiple Choice

Which of the following statements is true?

A) A natural monopoly always arises from government intervention in the market.
B) An increase in consumer demand can change a natural monopoly into a multiseller market.
C) A natural monopoly earns higher profits than a monopolistically competitive firm because it faces an upward-sloping market demand curve.
D) A natural monopoly earns higher profits than a monopolistically competitive firm because it faces a horizontal market demand curve.