3) Economists and Policy Makers often suggest that certain industries are characterized by "Natural Monopolies". a) Using a simple mathematical model, describe why a natural monopoly may characterize certain industries. b) Explain what may result if multiple firms sought to operate in this market. c) If firms are forward looking, what inefficiency might this outcome generate? d) Describe three regulatory solutions that might enhance the inefficiency that would occur if the natural monopoly were allowed to persist (i.e. what are three actions the state might take to cure this problem)