Essay
The demand schedule and total costs for a natural monopoly are given in the table below. 
(A)Calculate marginal revenue,marginal cost,and average total cost.
(B)Why is this firm a natural monopoly?
(C)Determine the monopoly price and quantity.
(D)Suppose the government decides to regulate this natural monopoly.If the regulators use average cost pricing,what will be the price and quantity of production?
(E)If regulators use marginal cost pricing,what will be the price and quantity of production? What will be profits under marginal cost pricing?
Correct Answer:
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(A) 
(B)This firm is a natural monopoly ...View Answer
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Correct Answer:
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(B)This firm is a natural monopoly ...View Answer
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