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9. Regulating a natural monopoly Consider the local cable company,

Question : 9. Regulating a natural monopoly Consider the local cable company, : 199427

9. Regulating a natural monopoly Consider the local cable company, a natural monopoly. The following graph shows the monthly demand curve for cable services and the company's marginal revenue (MR), marginal cost (MC), and average total cost (ATC) curves. 100 90 80 70 B 60 8 50 40 30 AT 20 MC 10 MR 2 4 10 12 14 16 18 20 QUANTITY (Thousands of subscriptions)

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