A Firm That Is a Natural Monopoly

A firm that is a natural monopoly

A) can supply the entire market at a lower average total cost than two or more firms.
B) has very small fixed costs and very large marginal costs.
C) is infrequently regulated because having one firm serve the market is economically sound.
D) cannot make an economic profit if it is not regulated because it must serve a very large customer base.
E) produces the efficient quantity of output when it is not regulated.

Correct Answer:

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