If a regulatory agency forces a natural monopolist to stop charging monopoly prices and start charging competitive prices,
A) taxpayers will have to subsidize the firm
B) price will fall below AVC
C) the monopolist will shut down
D) stockholders will benefit
E) quantity produced will increase

Question

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The Answer of If a regulatory agency forces a natural monopolist to stop charging monopoly prices and start charging competitive prices,
A) taxpayers will have to subsidize the firm
B) price will fall below AVC
C) the monopolist will shut down
D) stockholders will benefit
E) quantity produced will increase

If a Regulatory Agency Forces a Natural Monopolist to Stop