An unregulated natural monopolist would produce to the point at which

For a product with external benefits that is produced in a competitive, unregulated market, how can the resulting market output be described?

A) underproduction compared to the efficient level B) overproduction compared to the efficient level C) production equals the efficient level D) Underproduction or overproduction are both possible depending on whether the external benefit is to consumption or production. E) None of the above is correct.

Efficiency is the condition that exists when there is no way resources can be reallocated to increase the production of one good without decreasing the production of another

Indicate whether the statement is true or false