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5. Natural monopoly analysis The following graph shows the demand (D) for cable services in the imaginary town of Utilityburg. The graph also shows the

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5. 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. 0n the following graph, use the black point (plus symbol) to indicate the profit-maximizing price and quantity for this natural monopolist. 100 80 Monopoly Outcome 70 60 50 4o 30 PRICE (Dollars per subscription) 20 10 o 2 4 6 B 10 12 14 16 18 20 QUANTITY (Number of subscriptions)

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