The fourth stage in the regulatory process is

Marginal cost

A. equals both average variable cost and average total cost at their respective minimums. B. is the difference between total cost and total variable cost. C. declines continuously as output increases. D. rises for a time but then begins to decline when diminishing marginal returns set in.

Which statement is false?

A. The monopolist's demand and marginal revenue curves are identical. B. Your local phone company is a natural monopoly. C. A monopoly can be a small firm. D. None of these statements are false.