If a price floor is imposed in a natural monopoly market and

If a price floor is imposed in a natural monopoly market and the price floor is below marginal cost of the monopolist and below the price the monopolist would choose to charge if unregulated, then the monopolist will not produce any units for sale in the long run.

Solution

A monopolist generally earns excess profits in the long run because it can set its own price.

If a price floor is set below the equilibrium price, the floor is the minimum price he can charge. But it does not prevent him from charging a price higher than the floor price. So, even if floor price is lower than MC or lower than unregulated equilibrium price, he can charge a higher price that is more than the floor price. So he he certainly continue production in the long run.

Given statement is incorrect.