The Figure Below Shows Revenue and Cost Curves of a Natural

Multiple Choice

The figure below shows revenue and cost curves of a natural monopoly firm.Figure 14.1
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In the figure,
D: Demand curve
MR: Marginal revenue curve
MC: Marginal cost curve
ATC: Average total cost curve
-To avoid driving a natural monopolist into bankruptcy, regulatory commissions:

A) allow the monopolist to enjoy an economic profit.
B) do not allow the monopolist to make an accounting profit.
C) subsidize the monopolist to help it break even.
D) allow the monopolist to earn a fair rate of return.
E) allow the monopolist to temporarily shut down.