(Solved): 6. Natural monopoly analysis The following graph gives the demand (D) curve for 56 LTE services in ...

6. Natural monopoly analysis The following graph gives the demand (D) curve for 56 LTE services in the fictional town of Streamship Springs: The graph also shows the marginal revenue (MR) curve, the marginal cost (MC) curve, and the average total cost (ATC) curve for the local $5G$ LTE 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. Which of the following statements are true about this natural monopoly? Check all that apply. The 5 G LTE 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 SG LTE company must own a scarce resource. It is more efficlent on the cost side for one producer to exist in this market rather than a large numbe True or False: Without government regulation, natural monopolies can earn positive profit in the short run. True False