If an industry's demand conditions allow at most one firm to cover its costs while producing at its MES, this situation is known as

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This situation is known as a natural monopoly, where a single firm can produce at a lower cost than any potential competitor due to factors like economies of scale or high fixed costs. As a result, competition is limited and the market may not be able to support multiple firms.

If an Industry's Demand Conditions Allow at Most One Firm