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(Solved): 8. Natural monopoly analysisPlease answer this, thank you. The following graph gives the demand (D) ...



8. Natural monopoly analysis

Please answer this, thank you.

The following graph gives the demand (D) curve for \( 5 \mathrm{G} \) LTE services in the fictional town of Streamship Spring
The following graph gives the demand (D) curve for 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 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 LTE company is experiencing diseconomies of scale. The 5G LTE company is experiencing economies of scale. The LTE company must own a scarce resource. It is more efficient 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 profit in the long run. True False


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