In the Case of a Natural Monopoly,which Government Response Is

Multiple Choice

In the case of a natural monopoly,which government response is LEAST practical?

A) leave the monopolist firm free to maximize its profits
B) buy the monopolist firm and operate it as a government-owned entity
C) force the monopolist to break up into firms that compete with one another
D) subsidize the monopoly,so it can operate at the socially optimal production level
E) regulate the monopolist firm's price,to equal average total cost