Consider a natural monopoly that is regulated to produce the socially optimal amount of output. Given this information and holding everything else constant, how many of the following statements are true?

Consider a natural monopoly that is regulated to produce the socially optimal amount of output. Given this information and holding everything else constant, how many of the following statements are true? I. A natural monopoly regulated in this manner will produce a greater level of output than the natural monopoly would produce if there were no regulation. Il. At the socially optimal level of output this natural monopoly will find that the average total cost of producing this level of output is less than the marginal cost of producing the last unit. Ill. A natural monopoly regulated to produce this level of output will need a subsidy per unit of output produced equal to [(the average total cost of producing the socially optimal amount of the good) - (the marginal cost of producing the socially optimal amount of the good)]. IV. If the natural monopoly produces the socially optimal amount of the good it will have greater profits than if the natural monopoly acted as a single price unregulated monopoly. O Three statements are true. One statement is true. O Two statements are true. Four statements are true