If, for an output of q, a firm's average costs are declining at every level up to that quantity, the firm's natural monopoly is

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If a firm's average costs are declining at every level up to a certain quantity, it indicates that the firm is a natural monopoly. This is because the firm has a significant cost advantage in producing goods or services at a larger scale compared to smaller firms. Therefore, the firm can produce more efficiently and cost-effectively, making it difficult for smaller firms to compete. A sustainable natural monopoly can continue to operate efficiently without the need for regulatory intervention.

If, for an Output of Q, a Firm's Average Costs