For a firm to be a natural monopoly, economies of scale must be realised at a level of output that is close to total demand in the market.

Name: For a firm to be a natural monopoly, economies of scale must be realised at a level of output that is close to total demand in the market.
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A natural monopoly occurs when a single firm can supply the entire market demand at a lower cost than any combination of multiple firms, due to economies of scale being realized at high levels of output.

For a Firm to Be a Natural Monopoly, Economies of Scale