It Is Unrealistic to Regulate a Natural Monopoly at Marginal

Multiple Choice

It is unrealistic to regulate a natural monopoly at marginal cost pricing because

A) the government is not allowed to regulate markets.
B) marginal cost pricing ends up having the natural monopoly firm earn zero economic profits.
C) with this type of regulation,the firm will want to shut down,and that outcome is not desirable for society.
D) regulating a market causes more deadweight loss.
E) firms do not need to follow regulations from the government.