If a natural monopoly is forced to set a price consistent with price efficiency,it will

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In a natural monopoly, if the price is set equal to marginal cost to achieve price efficiency, the firm's price will be below its average total cost (ATC) due to the nature of its cost structure (high fixed costs and decreasing average costs). As a result, the monopoly will incur a loss on every unit of output produced because it is not covering its total costs.

If a Natural Monopoly Is Forced to Set a Price