3 . Natural monopoly analysis The following graph gives the demand (D) curve for satellite TV services in the fictional 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 satellite TV company, a natural monopolist. On the following graph, use the black point (plus symbol) to indicate the prot-maximizing price and quantity for this natural monopolist. 100 90 - Monopoly Outcome 50 40 ATC 30 MC PRICE (Dollars per subscription) 20 10 MR .0 O 2 4 6 8 10 12 14 16 1B 20 QUANTITY (Number of subscriptions) Which of the following statements are true about this natural monopoly? Check all that apply. [3 The satellite TV company is experiencing diseconomies of scale. [3 In order for a monopoly to exist in this case, the government must have intervened and created it. D The satellite TV company must own a scarce resource. [:1 It is more efcient on the cost side for one producer to exist in this market rather than a large number of producers. True or False: Without government regulation, natural monopolies can earn positive profit in the long run. O True O False