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Natural monopoly analysis The following graph shows the demand (D) for electricity services in a particular town. The graph also shows the marginal revenue (MR)

Natural monopoly analysis

The following graph shows the demand (D) for electricity services in a particular town. The graph also shows the marginal revenue (MR) curve, the marginal cost (MC) curve, and the average total cost (ATC) curve for the local electricity company, a natural monopolist.

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