The diagram below shows cost and revenue curves for a natural monopoly producing electricity. Price is dollars per kilowatt hour and quantity is kilowatt hours per day. 
FIGURE 12- 7
-Refer to Figure 12- 7. Suppose this firm is being regulated using a policy of average- cost pricing. The resulting price and output would be per kwh and kwh per day.
Definitions:
Autarky
An economic system where a region or country is self-sufficient and does not engage in international trade.
Consumer Surplus
The discrepancy between what buyers are willing to offer for an item or service and the price they actually pay.
Producer Surplus
Producer surplus is the difference between the amount producers are willing and able to supply a good for and the actual amount they receive due to market price.
Autarky
An economic system wherein a country or entity is self-sufficient and does not engage in international trade.
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