the answer is not AHomework Answers
Natural monopoly occurs when the fixed cost are very high for the production of that good.
If the natural monopoly is broken up, the costs would increase for every firm.
The demand would however be same.
To cover costs, the prices would rise. Also less efficiency would be prevailing due to the high costs.
Hence the correct option is
The price charged by the competing firms would increase because the competing firms would be less efficient.
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the answer is not A
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