An unregulated natural monopoly
A)could produce output at higher costs than two firms could if it supplied all the quantity that buyers would take off the market.
B)will charge a price equal to marginal cost.
C)would produce efficiently if it behaved as a normal profit-maximizing monopoly.
D)will likely force society to face a deadweight loss.
E)will charge a price below marginal cost.

Question

Quizplus · Accepted Answer

An unregulated natural monopoly will likely force society to face a deadweight loss because it will produce less and charge a higher price than what would be socially optimal, as it seeks to maximize its profits.

An Unregulated Natural Monopoly