3 . Natural monopoly analysis The following graph gives the demand (D) curve for water services in the ctional town of Streamship Springs. The graph also shows the marginal revenue (MR) curve, the marginal cost (MC) curve, and the average total cost (ATC) curve for the local water company, a natural monopolist. On the following graph, use the black paint (plus symbol) to indicate the prot-maximizing price and quantity for this natural monopolist. 40 32 Monopoly Outcome 28 24 20 16 12 PRICE (Dollars per hundred cubic feet) 0 1 2 3 4 5 6 7 8 9 10 QUANTITY (Hundreds of cubic feet] Which of the following statements are true about this natural monopoly? Check all that apply. C] It is more efficient on the cost side for one producer to exist in this market rather than a large number of producers. C] The water company is experiencing economies of scale. C] The water company must own a scarce resource. C] The water company is experiencing diseconomies of scale. True or False: Without government regulation, natural monopolies never earn zero profit in the long run. 0 True 0 False