If a natural monopolist switches to marginal cost pricing from charging a profit-maximizing price,there will be a(n)_____

Question

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Switching to marginal cost pricing means that the monopolist will produce at the point where marginal cost equals marginal revenue, which will result in a higher level of output. This increase in output will lead to an increase in consumer surplus as more consumers are able to benefit from the lower price. There may be a decrease in economic profit in the short run due to the lower price, but in the long run, the increase in output and potential increase in demand can lead to higher profits. There would not be a decrease in demand or an increase in price as a result of this switch.

If a Natural Monopolist Switches to Marginal Cost Pricing from Charging