-If the natural monopoly shown in the figure above is unregulated, then it will charge a price of
A) $2.
B) $4.
C) $5.
D) $6.

Name: -If the natural monopoly shown in the figure above is unregulated, then it will charge a price of A) $2. B) $4. C) $5. D) $6.
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Question

-If the natural monopoly shown in the figure above is unregulated, then it will charge a price of
A) $2. 
B) $4. 
C) $5. 
D) $6.

Quizplus · Accepted Answer

A natural monopoly will charge a price where marginal cost equals marginal revenue, which is typically higher than the competitive price, often at the highest price point in the absence of regulation.

-If the Natural Monopoly Shown in the Figure Above Is