CENGAGE | MINDTAP Homework (Ch 15) 8. 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 profit-maximizing price and quantity for this natural monopolist. 100 90 Monopoly Outcome 80 RICE (Dollars per subscription) 30 MC E EE 5 Apr 7 OFMONO hpNicholas W.. A ALEKS - Nicholas W. ALEKS - ONLLINE Q.. ^ C4ELink: Log in to t. CENGAGE | MINDTAP Homework (Ch 15) 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 PRICE (Dollars per subscription) 50 40 ATC 30 MC 20 10 MR D 6 B 12 14 16 18 20 QUANTITY (Number of subscriptions)CENGAGE | MINDTAP Homework (Ch 15) 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. The satellite TV company is experiencing diseconomies of scale. In order for a monopoly to exist in this case, the government must have intervened and created it. It is more efficient on the cost side for one producer to exist in this market rather than a large number of producers. The satellite TV company must own a scarce resource. True or False: Without government regulation, natural monopolies can earn positive profit in the short run. True False Grade It Now Save & Continue ? Continue without saving MOD