If government regulators force a natural monopoly to produce where price equals marginal cost,the monopoly will _____

Question

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If the natural monopoly is forced to produce where price equals marginal cost, the firm will likely incur losses in the short run. This is because in a natural monopoly, the firm faces high fixed costs and low variable costs. If the price is set at the level of marginal cost, it will not cover the fixed costs, which will result in losses for the firm. However, in the long run, the firm may be able to adjust its fixed costs or exit the market.

If Government Regulators Force a Natural Monopoly to Produce Where