Question: The following graph shows the demand (D) for cable services in the imaginary town of Utilityburg. The graph also shows the marginal revenue (MR) curve,

The following graph shows the demand (D) for cable services in the imaginary town of Utilityburg. The graph also shows the marginal revenue (MR) curve, the marginal cost (MC) curve, and the average total cost (ATC) curve for the local cable company, a natural monopolist.

100 90 80 Monopoly Outcome 70 60 PRICE (Dollars per subscription) 50 40 30 20 ATC 10 MC MR D 0 2 4 8 10 12 14 16 18 20 QUANTITY (Number of subscriptions)

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