3 . Natural monopoly analysis

The following graph shows the demand (D) for cable services in the imaginary town of Utilityburg. The graph also shows the marginal revenue (MR) curve, the marginal cost (MC) curve, and the average total cost (ATC) curve for the local cable company, a natural monopolist.

On the following graph, use the black point (plus symbol) to indicate the profit-maximizing price and quantity for this natural monopoly.

Module Six Quiz On the following graph, use the black point (plus symbol) to indicate the profit-maximizing price and quantity for this natural monopolist. 100 90 80 Monopoly Outcome 70 60 50 PRICE (Dollars per sub scription) 40 ATC 30 MC 20 10 MR D 2 6 8 10 12 14 16 18 20 QUANTITY (Number of subscriptions) Which of the following statements are true about this natural monopoly? Check all that apply. Type here to search O