A sufficient condition for a natural monopoly is to have an average total cost curve that is

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A natural monopoly occurs when a single firm can supply a good or service to an entire market at a lower cost than could two or more firms, primarily due to economies of scale. This situation is characterized by a falling average total cost curve, as the firm can spread its fixed costs over a larger number of units, reducing the cost per unit.

A Sufficient Condition for a Natural Monopoly Is to Have