Question: Draw the demand and cost (average and marginal) functions for a natural monopoly and show the efficient level of output if the natural monopolist uses

Draw the demand and cost (average and marginal) functions for a natural monopoly and show the efficient level of output if the natural monopolist uses the marginal cost pricing. a. Show diagrammatically how much profit (negative or positive) the natural monopolist will experience and what other strategy the government can use to enable the natural monopolist to earn normal profit.

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