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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 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 (ATE) curve for the local electricity company, a natural monopolist. On the following graph, use the black point ( plus symbol) to indicate the protmaximizing price and quantity for this natural monopolist. 40 36 . 32 _ Monopoly Outcome 28 24 20 -- 15 12 - PRICE (Cents per Kilowatthour) [J 1 2 3 4 5 6 T 8 9 10 QUANTITY (Thousands of kilowatthours)
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