Which of the Following Is Likely to Take Place If

Multiple Choice

Which of the following is likely to take place if regulators split a natural monopoly into two smaller firms?

A) The number of firms in the market will increase but the market price will be unchanged.
B) The output in the industry will increase.
C) The cost of production in the industry will increase.
D) The market demand curve will become flatter.
E) The total industry profits will increase.