Demonstrate graphically the price and quantity a natural monopolist would choose in the absence of regulation. Shade the area representing profit. In a diagram show what happens to that profit if the monopolist is required to charge a price equal to marginal cost, PC.

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The Answer of Demonstrate graphically the price and quantity a natural monopolist would choose in the absence of regulation. Shade the area representing profit. In a diagram show what happens to that profit if the monopolist is required to charge a price equal to marginal cost, PC.

Demonstrate Graphically the Price and Quantity a Natural Monopolist Would