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Draw 3 graphs for a monopoly and a regulated natural monopoly showing these 3 things The average fixed cost curve will never intersect with either
Draw 3 graphs for a monopoly and a regulated natural monopoly showing these 3 things
- The average fixed cost curve will never intersect with either the horizontal or vertical axis.
- There must be proper positioning of the Average Total Cost curve and Average Variable Cost curve.
- The Average Total Cost curve and Average Variable Cost curve must not touch (in between is average fixed costs - which can never be zero). Show the area of economic profit for a monopolist. Show where a natural monopolist prices.
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