8. 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 (ME 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 monopolist. 100 5 8 Monopoly Outcome 70 50 PRICE (Dolar per subscription 50 MO 30 20 10 MR 20 10 13 14 QUANTITY (Number of subscriptions) Which of the following statements are true about this natural monopoly? Check all that apply. The cable company is experiencing economies of scale. The cable company is experiencing diseconomies of scale. The cable company must own a scarce resource. In order for a monopoly to exist in this case, the government must have intervened and created it. True or False: Without government regulation, natural monopolies can earn positive profit in the short run. True O False