Which of the Following Is True of a Natural Monopoly

Multiple Choice

Which of the following is true of a natural monopoly that is regulated by the average-cost pricing strategy?

A) The natural monopoly will earn positive economic profit.
B) The natural monopoly will produce less output than an unregulated monopoly.
C) The equilibrium price of the natural monopoly is now the same as the competitive price.
D) A part of the deadweight loss from an unregulated monopoly is eliminated.