At a Level of Output When Regulators Require a Natural

Multiple Choice

At a level of output when regulators require a natural monopoly to set a price that is equal to marginal cost,the firm

A) makes zero economic profit.
B) makes an economic profit.
C) incurs an economic loss.
D) makes a normal-economic profit.
E) makes either zero economic profit or an economic profit, depending on whether the firm's average total cost equals or is less than its marginal cost.