If the government regulated a natural monopolist to achieve price efficiency without subsidies or price discrimination,the monopolist would

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In a natural monopoly, the cost structure is such that one firm can supply the entire market demand at a lower cost per unit than if there were multiple firms. If the government regulated a natural monopolist to achieve price efficiency (setting price equal to marginal cost), the monopolist would likely operate at a loss. This is because, for a natural monopolist, the average total cost is typically above the marginal cost due to high fixed costs and economies of scale. Without subsidies or the ability to price discriminate, the firm would not be able to cover its average costs and would lose money, potentially leading to going out of business.

If the Government Regulated a Natural Monopolist to Achieve Price