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Consider the only electric company in a small town, which you can assume operates as a natural monopoly. The following graph shows the demand curve for electricity services per month, as well as the provider’s marginal revenue (MR) curve, marginal cost (MC) curve, and average total cost (ATC) curve. A graph plots price in dollars per subscription on the y-axis ranging from 0 to 100 in increments of 10 and quantity in thousands of subscriptions on the x-axis ranging from 0 to 20 in increments of 2. A downward sloping straight line blue demand curve labeled D is defined by (0,100) and (20, 0). A downward sloping straight line black marginal revenue curve labeled M R is defined by (0,100) and (10, 0). A horizontal orange line labeled M C occurs at price level higher. A green curve convex with respect to the origin decreases at a decreasing rate, and is labeled A T C. Four grey stars are plotted, each with grey dashed lines extending to both axes. One is plotted along the demand curve at the quantity at which M C equals M R with coordinates (7, 65). One is plotted along the A T C curve at this same quantity with coordinates (7, 39). One is plotted at the intersection of A T C and demand at (13, 35) One is plotted at the intersection of M C and D at (14, 30). 024681012141618201009080706050403020100PRICE (Dollars per subscription)QUANTITY (Thousands of subscriptions)DMRMCATC14, 30 Suppose the government has elected not to impose regulations on the industry, and so the firm faces no regulatory constraints in maximizing profits. Complete the first row of the following table. Pricing Mechanism Short Run Long-Run Decision Quantity Price Profit (Subscriptions) (Dollars per subscription) Profit Maximization               Marginal-Cost Pricing               Average-Cost Pricing                Suppose now that the government decides to require the monopolist to set its price equal to marginal cost. Complete the second row of the previous table. Suppose now that the government decides to require the monopolist to set its price equal to average total cost. Complete the third row of the previous table. Under average-cost pricing, the government will raise the price of output whenever a firm’s costs in

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