If a state government regulatory agency like the (i.e. California Public Utilities Commisssion) sets the price that a local monopoly can charge (i.e. PG&E) to the point where Price = Marginal Cost, then this will not be a problem for the monopoly. When Price = Marginal Cost, the monopoly can still generate healthy profits by itself without getting any help from the government.
a.True
b.False