Hi, in my economics class, we are looking at graphs, and were giving some practice questions to try before our finals, but I have been struggling with this one for a while. Could someone explain it to me, so I would know what to do in a test situation?

Q: Answer the following regarding regulating a natural monopoly using the diagram below. Note, the graph shows D, MR, ATC and MC. ($/unit) P1 P2 ATC IF MC H MR D=P 01 02 03 (# of unit) Quantity when using Average Cost Pricing regulation Choose... * Profit maximizing price when unregulated Choose... * Price when using Average Cost Pricing regulation Choose... * Price when using Marginal Cost Pricing regulation Choose... * CheckChoose. P6 P3 P7 P5 Q2 TC M P1 Q1 Q3 P4