Question: I'm struggling in this question, please help me explain. Thank you so much! Choice Four: 1. Consider the local cable company, a natural monopoly. The

I'm struggling in this question, please help me explain. Thank you so much!

Choice Four: 1. Consider the local cable company, a natural monopoly. The following graph shows the monthly demand curve for cable services, the company's marginal revenue (MR), marginal cost (MC), and average total cost (ATC) curves. 100 90 70 8 PRICE (Dollars per subscription) g 20 ATC 10 MC MR D o 6 8 10 12 14 16 18 20 QUANTITY (Thousands of subscriptions) Short Run Decision Pricing Mechanism Long-Run Decision Quantity Price Profit Profit Maximization Marginal-Cost Pricing Average-Cost Pricing

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