Suppose a Monopolist Has Costs Such That When Output Is

Suppose a monopolist has costs such that when output is 1,000 units per hour, average cost is $5. If the monopolist is regulated by a policy of average-cost pricing, the monopolist will charge a price of

A) $5.
B) $5 only if the quantity demanded is 1,000 units per hour at a price of $5.
C) $5 only if the quantity demanded is greater than 1,000 units at a price of $5.
D) $5 only if the quantity demanded is less than 1,000 units per hour at a price of $5.