From the explanation of the mock question:
“Monopolists forced to operate where price equals marginal cost will suffer losses and go out of business rather than face such regulation.”
Since for monopoly, usually MC > ATC I cannot agree with above quote?
As I can price MC which is greater than ATC I have a gain?
http://images3.wikia.nocookie.net/__cb20100413040010/centralecon/images/2/2c/AVC_Graph_3.png