(Figure: Short-Run Monopoly in the Market for Electricity) Use Figure: Short-Run Monopoly in the Market for Electricity. The profit-maximizing quantity of output is: Price and cost MR Demand RSTU Quantity (KWH per pound) a. b. C. d QUESTION 2 (Table: Demand and Total Cost for Asgard) Use Table: Demand and Total Cost for Asgard. Valkyrie runs a natural monopoly that produces electricity for a small mountain village near Asgard. The table shows the demand facing Valkyrie and Valkyrie's total costs. The marginal revenue of the second unit of output is: Table: Demand and Total Cost for Asgard Quantity Price per Total Cost (megawatts) Megawatt $550 $1,000 500 1,075 450 1,200 400 1,375 5 350 1,600 300 1,875 250 2,200 00 200 2,575 Oa. $450. b. $500. c. $250. Od. $200. QUESTION 3 A natural monopoly exists whenever a single firm: a. has economies of scale over the range of output that is relevant to its market. b. is licensed to operate by the government. c. develops network externalities. d. is investor-owned but has been granted an exclusive right by the government to operate in a market