A Regulated Monopoly That Faces Rising Long-Run Costs (At Its

Multiple Choice

A regulated monopoly that faces rising long-run costs (at its current level of output) and which is forced to price its output at average cost will provide

A) less output than what is socially optimal.
B) more output than what is socially optimal.
C) the socially optimal amount of output.
D) more output than what can be absorbed by the market.
E) so little output that there will be a shortage.