Which of the following is true of a natural monopoly?
A) If regulated, the firm will have a higher level of output than if it was unregulated.
B) If regulated, the firm will have a lower level of output than if it was unregulated
C) If regulated, the firm will be allowed to charge a price higher than its average cost.
D) If regulated, the firm will earn economic profit in the long run.
E) If regulated, the firm will earn economic profit in the long run
Correct Answer:
Verified
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