Answer:
The demand curve will intersect the long-run average cost (LRAC) at its downward sloping point.
Explanation:
Usually utility companies are monopolies because the cost of setting up the service is very high, but once the initial investment is finished, the average cost of providing the service is extremely low. This applies to all utilities: electricity, water, natural gas, etc. The marginal cost of adding new customers is also extremely low.
Most utilities are public companies because consumers demand the service but are not willing to pay a high price for it.
