Which of the following is true of a natural monopoly Oa If r

Which of the following is true of a natural monopoly? Oa. If regulated, the firm will be allowed to charge a price higher than its average cost. b. If regulated, the firm will haye a lower level of output than if it was unregulated. Oc. If regulated, the firm will have a higher level of output than if it was unregulated. Oc. If regulated, the firm will eam economic profit in the long run. De. If regulated, the firm will experience diseconomies of scale.

Solution

Answer :- Option b). If regulated, the firm will have a lower level of output than if it was unregulated.

Conclusion :- Option b).