A Natural Monopoly Is Producing an Output Level of 1,000

Multiple Choice

A natural monopoly is producing an output level of 1,000 units per day.If the monopoly is broken up into 5 firms,then average total cost for each of the 5 firms

A) will exceed the monopolist's average total cost
B) will equal the monopolist's average total cost
C) will fall below the monopolist's average total cost
D) may equal or fall below the monopolist's average total cost
E) may equal or exceed the monopolist's average total cost