The Outcome of Regulating a Natural Monopoly Using the Marginal

Multiple Choice

The outcome of regulating a natural monopoly using the marginal cost pricing rule is

A) that the firm makes a normal profit.
B) that the firm maximizes its profit.
C) that consumer surplus is less than what it would be if the firm maximized its profit.
D) an efficient level of production.
E) that the firm makes an economic profit.