5 3. Natural monopoly analysisThe 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 polnt (plus symbol) to indicate the profit-maximizing price and quantity for this natural monopolist.Monopoly Outome24201612ATO10QUANTITY (Thounands of kowa hours)odule Six Quiz40Monopoly Outcome322824ATOMR4 S.10QUANTITY (Thousands of klowatt-hours)Which of the following statements are true about this natural monopoly? Check all that applyO The electricity company is experiencing diseconomies of scale.O It is more efficient on the cost side for one producer to exist in this market rather than a large number of producers.O The electrricity company is experiencing economies of scale.O The electricity company must own a scarce resourceTrue or False: Without government regulation, natural monopoles can earn positive profit in the short run.O TrueO False

A single seller market decides its own price is called a monopoly market. The marginal revenue is…

3. Natural monopoly analysis 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 profe-maximizing price and quantity for this natural monopolist PRICE (Cents per Klow-hour) ule Six Quiz PRICE (Cents per Klowa-hour) K 34 30 RRART 2. MR . QUANTITY (Thousands of kilowat houn) 4 False MR 2 > 4 7 QUANTITY (Thousands of low-hours) . . . ATO MAO '+ Monopoly Outcome Monopoly Outcome which of the following statements are true about this natural monopoly? Check all that apply The electricity company is experiencing diseconomies of scale It is more efficient on the cost side for one producer to exist in this market rather than a large number of producers. The electricity company is experiencing economies of scale The electricity company must own a scarce resource True or False: Without government regulation, natural monopolies can earn positive profit in the short run. - True