For a natural monopoly to cover its total cost, its price must equal its

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A natural monopoly has a decreasing average total cost curve and a downward sloping demand curve. In order to cover its total cost (including fixed cost), it must charge a price that is equal to its average total cost. This is because if it charges a price lower than average total cost, it will make a loss, and if it charges a price higher than average total cost, it will have excess profit which can attract new entrants in the long run.

For a Natural Monopoly to Cover Its Total Cost, Its