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The following graph shows the demand (D) for electricity services in the imaginary town of Utilityburg. The graph also shows the marginal revenue (MR) curve,

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The following graph shows the demand (D) for electricity services in the imaginary town of Utilityburg. 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. On the following graph, use the black point (plus symbol) to indicate the profit-maximizing price and quantity for this natural monopolist. 40 36 + 32 Monopoly Outcome 28 24 PRICE (Cents per Kilowatt-hour) 20 16 12 ATC MC MR D 2 3 4 5 6 7 8 9 10 QUANTITY (Thousands of kilowatt-hours)which of the following statements are true about this natural monopoly? Check all that apply. The electricity company is experiencing economies of scale. In order for a monopoly to exist in this case, the government must have intervened and created it. The electricity company is experiencing diseconomies of scale. It is more efcient on the cost side for one producer to exist in this market rather than a large number of producers. True or False: Without government regulation, natural monopolies never earn zero prot In the long run. True False

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