-When Regulators Require That a Natural Monopoly Sets Price Equal

Multiple Choice

-When regulators require that a natural monopoly sets price equal to average total cost:

A) it is said to be allowing a fair rate of return.
B) the firm earns a super normal profit.
C) the firm shuts down permanently.
D) the firm operates at the profit-maximizing level of output.
E) the firm shuts down temporarily.