The Rail System in Metropolis Is a Natural Monopoly

The rail system in Metropolis is a natural monopoly.Which of the following is likely to be true if the government regulates the system by setting a competitive price?

A) Price and output will be higher in a regulated monopoly than in an unregulated monopoly.
B) Price and output will be lower in a regulated monopoly than in an unregulated monopoly.
C) Price will be lower and output will be higher in a regulated monopoly than in an unregulated monopoly.
D) Price will be higher and output will be lower in a regulated monopoly than in an unregulated monopoly.
E) Profit will be lower in a regulated monopoly than in an unregulated monopoly, but there will be no change in output.