The demand schedule and total costs for a natural monopoly are given in the table below. 
(A)Calculate marginal revenue,marginal cost,and average total cost.
(B)Why is this firm a natural monopoly?
(C)Determine the monopoly price and quantity.
(D)Suppose the government decides to regulate this natural monopoly.If the regulators use average cost pricing,what will be the price and quantity of production?
(E)If regulators use marginal cost pricing,what will be the price and quantity of production? What will be profits under marginal cost pricing?
Definitions:
Evolved Module
A concept in psychology suggesting that certain mental faculties or predispositions have been developed through natural selection over time to solve specific problems of survival or reproduction.
Fear Learning
The process of acquiring fears through conditioning, where an initially neutral stimulus becomes associated with a fearful or traumatic event, causing future fear responses.
Preparedness
The state of being ready and able to deal with specific situations, often referring to psychological readiness to perceive certain stimuli as connected.
Reaction Range
A concept in genetics denoting the extent of possible phenotypic variations for a trait given a certain genotype, influenced by environmental conditions.
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